The U.S. Mortgage market just flipped. CNBC reports sudden surge in applications.

The Mortgage Application Index is updated weekly by the Mortgage Banker's association, and just hit a reading of 169 in the first week of September. This is the highest level in 3 years, and could show signs of a thawing housing market. However - overall demand levels are still low, and any increase in demand is likely some buyers finally jumping on lower prices.

Many people are thinking the Fed Rate Cuts coming later this month will spur homebuyer demand, with the Fed forecast to cut interest rates by 25 basis points at their September 17th meeting. Mortgage rates have already dropped a bit, down to 6.29%, anticipating this rate cut. Could they drop further now that the labor market is cooling?