U.S. mortgage rates drop to nearly a one-year low, refinancing boom heats up
U.S. mortgage rates fell to a nearly one-year low last week, significantly boosting refinancing activity. According to data from the Mortgage Bankers Association, the 30-year mortgage rate dropped to 6.39%, and the refinancing activity index reached its highest level since early 2022. This trend injects new vitality into the real estate market, with expectations that the Federal Reserve will lower the benchmark interest rate soon, further stimulating buyer demand and home sales
According to the Zhitong Finance APP, U.S. mortgage rates fell to their lowest level in nearly a year last week, a change that significantly boosted refinancing activity. Data released by the Mortgage Bankers Association (MBA) on Wednesday showed that the 30-year mortgage contract rate decreased by 10 basis points to 6.39% for the week ending September 12. The refinancing activity index monitored by the association climbed to its highest level since early 2022, and the housing purchase application index also rose in tandem.
Mortgage rates have declined for three consecutive weeks, injecting new vitality into the real estate market, which has struggled to regain growth momentum for a long time. If rates continue to fall, it could not only reignite demand from homebuyers but also encourage more Americans to list their homes for sale.
Investors expect the Federal Reserve to begin lowering the benchmark rate multiple times over the next few months starting later this Wednesday.
The total mortgage activity index monitored by the MBA (covering both home purchases and refinancing) has risen to its highest point in over three years.
The MBA has conducted this survey weekly since 1990, targeting mortgage banks, commercial banks, and savings institutions. Its data covers over 75% of retail housing mortgage applications in the United States, making it widely representative
