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US Mortgage Rates Drop to 11-Month Low
Summary: According to Jinshi's report, US mortgage rates fell to the lowest level in nearly a year last week, stimulating a surge in refinancing activity and prompting potential homebuyers to enter the market. Based on data released by the Mortgage Bankers Association (MBA) on Wednesday, as of the week ending September 5, the 30-year fixed mortgage ...
According to Jinshi's report, US mortgage rates fell to the lowest level in nearly a year last week, stimulating a surge in refinancing activity and prompting potential homebuyers to enter the market. Based on data released by the Mortgage Bankers Association (MBA) on Wednesday, as of the week ending September 5, the 30-year fixed mortgage contract rate dropped 15 basis points to 6.49%. Rates for 15-year fixed-rate loans and five-year adjustable-rate loans also fell to the lowest level in about a year. This decline was enough to push MBA's mortgage activity index (covering home purchases and refinancing) to its highest level in three years. If financing costs continue to decline, it will provide much-needed support for the sluggish real estate market. Residential construction has been a weak spot in the US economy - dragging down the domestic product (GDP) in four out of the past five quarters. MBA's home purchase index rose by 6.6%, reaching its highest level since the first week of July. The refinancing index increased by over 12%, reaching the highest level in nearly a year.
