Bank of America reported a significant 80% surge in mortgage applications from January to March, driven by growing home inventory and decreased long-term bond yields. Matt Vernon, the head of consumer lending at the bank, noted the unexpected rise in homebuying activity which surpassed typical seasonal patterns. The decline in U.S. 10-year bond yields, influencing mortgage rates, enticed more buyers back into the market. Despite the interest rate on a 30-year mortgage currently standing at 6.7%, below the previous year's 7%, BofA is witnessing increased buyer demand. Interest in mortgage refinancing is also growing, but with 80% of the bank's mortgages already having rates under 6%, further rate reductions would be needed to drive more demand. Overall, there is optimism in the housing market, with forecasts indicating improved affordability due to expected interest rate adjustments, rather than an increase in available homes. UWM Holdings, another mortgage lender, anticipates heightened demand for new mortgages and refinancing as individuals explore their options amid stable economic conditions. The company projects a rise in mortgage and refinancing originations for the first quarter compared to the previous year.