U.S. mortgage applications surged 28.5% in early 2026, driven by a 40% rise in refinancing as 30-year fixed rates fell to 6.18%. This followed a government directive for Fannie Mae and Freddie Mac to buy mortgage-backed securities, lowering rates. Increased inventory and easing affordability constraints signal a market rebound. Homebuilders and tech-enabled lenders benefit, though concerns remain over rising home prices and policy risks.