US housing market gains momentum as loan applications jump amid first drop in mortgage rates in 5 weeks

• The housing market is gaining steam as rates drop and mortgage applications surge.
• The 30-year mortgage rate fell for the first time in five weeks, and applications jumped 7% last week.
• But volatility in the market could still hinder housing activity, MBA's deputy chief economist said.

Housing market activity has picked up over the last week, evidenced by a jump in home loan applications following a drop in mortgage rates.

Mortgage applications jumped 6.5% over the week ending on March 10, the Mortgage Bankers Association said on Wednesday. That comes amid the first drop in mortgage rates in five weeks, with the rate on the 30-year fixed mortgage falling to an average of 6.71%.