After the Federal Reserve signaled a prospective pause in rate hikes, mortgage demand surged.

After the chairman of the Federal Reserve suggested an end to an unprecedented string of interest rate increases, mortgage rates declined slightly last week. The decline was not substantial, but it was sufficient to increase demand among current homeowners seeking to refinance their mortgages at lower rates.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased ....