(Bloomberg) — U.S. mortgage rates fell last week to the lowest level in nearly four months, sparking the highest demand for refinancing since February.
The rate on a 30-year fixed mortgage contract decreased 20 basis points to 7.17% in the week ending December 1, according to the Mortgage Bankers Association (MBA). The rate has fallen 69 basis points in the last five weeks, the biggest drop for that time period since late 2008.
Mortgage News Daily, which is updated more frequently, put the 30-year fixed mortgage rate at 7.08% on Tuesday.
Since peaking near 8% in October, mortgage rates have retreated on expectations that the Federal Reserve would not only have finished raising interest rates but could begin cutting them early next year. Economists maintain that the decline will soon translate into greater housing inventory and sales, since homeowners will not have to pay such an expensive fee to switch.
Refinancing activity rose nearly 14%, the largest increase since February, helping boost the overall MBA application rate. Purchasing activity declined slightly but remained near the highest level since mid-September.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data covers more than 75% of all US retail residential mortgage applications.
Nota Original:US Mortgage Rate Drops to Four-Month Low, Boosting Refinancing
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2023-12-06 15:18:27
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