Mortgage rates are hovering near their lowest averages in about a year — and homeowners are taking advantage.

Applications for refinances increased 111% in the week ended Oct. 24 compared to the same week a year earlier, according to data released Wednesday by the Mortgage Bankers Association. On a weekly basis, applications were up 9%.

As of Thursday, the 30-year, fixed-rate mortgage was averaging 6.19%, data from mortgage giant Freddie Mac showed. The 15-year, fixed-rate mortgage — a common choice among refinancers — averaged 5.44%.

It was the fourth consecutive week of declines in mortgage rates and it sparked activity among borrowers, especially those with heftier loans. The average loan size for refinancers was elevated at $393,300, according to Joel Kan, the association's deputy chief economist.

"Borrowers with larger loan sizes continue to be sensitive to rate movements," he said in a statement.

Purchase applications for new mortgages were also up, the MBA's data showed. Compared to a year earlier, there was a 20% increase.

In recent months, demand for mortgages has strengthened, a positive sign for the housing market at large, according to economists at Wells Fargo.

"The improvement suggests that new and existing home sales, which have both grown modestly recently, should continue to trend in a positive direction," they wrote in commentary published last week.

There are some caveats, however.

For one, the Wells Fargo team points out that the broader economic landscape is currently a mixed bag. That could adversely affect mortgage rates, worsen affordability or damage consumer spending.

There's also the Federal Reserve. Though it's likely the central bank will lower its benchmark interest rate this week, the commentary from leadership that follows that decision is more important for the mortgage market.

"[Mortgage] rates are already low today. The Fed rate cut won't make them go any lower," Matthew Graham, chief operating officer of Mortgage News Daily, explained in a blog post Tuesday afternoon. "Other info from the Fed could make them go either higher or lower, depending on what's said."

The takeaway is there are encouraging signs that the mortgage market, and thus, the housing market, could soon see accelerated activity compared to recent — as in the last two years — norms.

"The mortgage applications for purchase index does not appear to be accelerating sharply and is still low relative to the high levels registered after the pandemic," the Wells Fargo report said. "This suggests a significant near-term break-out in home sales is unlikely as challenging affordability conditions and a less-robust macroeconomic backdrop continue to limit activity."