Mortgage rates log biggest drop in over a year amid falling bond yields

• Rates on the 30-year fixed mortgage dropped from 7.86% to 7.61% in the last week, the MBA said Wednesday.
• That marks the biggest weekly drop in over a year, and mortgage application volume jumped.
• The move comes amid tumbling Treasury yields, which have pulled back from 16-year highs. 

The rate on the most popular US home loan saw the biggest weekly decline in over a year last week, while mortgage demand spiked, according to the the latest data from the Mortgage Bankers Association. 

The MBA said Wednesday the average interest rate on a 30-year fixed mortgage with loan balances of $726,000 or less moved from 7.86% to 7.61% last week. At the same time, total mortgage application volume climbed 2.5% compared to the prior week.