Homebuyers across the United States are finally getting some break. According to the Mortgage Bankers Association, the 30-year fixed mortgage rate dropped to 6.29% in the first week of September, its lowest level since February 2023.
The rate marks a 14 basis points slide from the week prior and represents the sixth consecutive week on which the U.S. mortgage rates went down. It’s also almost a full percentage point less on a year-over-year basis.
The 15-year mortgage went down from 5.98% to 5.71%, also the lowest level since February 2023, while mortgages with adjustable rates also saw a decline.
The declining mortgage rates have caused refinance applications to rise 1% compared to the week prior. The Refinance Index has surged by 106% on a year-over-year basis, although this giant leap is a result of historically low refinancing activity in 2023. The total mortgage applications rose by 1.4%.
“Treasury yields have been responding to data showing a picture of cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month,” Joel Kan, Vice President and Deputy Chief Economist at MBA, said in a press release. “With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace.”