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Mortgage demand roars back to life as rates drop to lowest level in a year
Last week, home-purchase applications surged as mortgage rates fell to their lowest level in over a year.
The Mortgage Bankers Association (MBA) reported a 6.9% increase in mortgage applications for the week ending Aug. 2.
The average rate for a 30-year loan dropped to 6.55% from 6.82%, marking the lowest rate since May 2023.
The lower rates also led to a 16% surge in refinancing applications, which were 59% higher than the same week last year.
Refinancing allows homeowners to take out a new loan to pay off the original mortgage, offering benefits like a lower interest rate, reduced monthly payments, or a shorter loan term, Fox Business has reported.
read more: https://www.foxbusiness.com/economy/mortgage-demand-roars-back-life-rates-drop-lowest-level-year
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