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Mortgage Rates Hit Monthly Low, Refi Boom Ignites Savings
18 Feb
Summary
- Mortgage interest rates reached their lowest point in a month.
- Total mortgage demand increased 2.8% due to refinance activity.
- Refinance applications jumped 7% week-over-week and 132% year-over-year.
Mortgage interest rates have fallen to their lowest point in one month as of last week, creating a surge in refinancing applications. This decrease in rates, specifically for 30-year fixed-rate mortgages with conforming loan balances, has driven total mortgage demand up by 2.8%.
The average contract interest rate for a 30-year fixed-rate mortgage dropped to 6.17% from 6.21%. This favorable shift has prompted a strong response from homeowners looking to reduce their monthly payments.
According to the Mortgage Bankers Association, refinance applications saw a substantial 7% increase over the past week. This surge represents the strongest week for refinancing activity since mid-January and is 132% higher compared to the same week in the previous year, when interest rates were significantly higher.
