Mortgage refinance demand jumps 14% as rates fall to lowest point since August

After surging over 8% in October, mortgage rates are falling back toward 7% again, and that is jump-starting the refinance market.

Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.17% from 7.37%, with points dropping to 0.60 from 0.64 (including the origination fee) for loans with a 20% down payment, according to the Mortgage Bankers Association. That was the lowest level since August.

As a result, applications to refinance a home loan increased 14% from the previous week and were 10% higher than the same week one year ago.

“November was a stellar month for mortgage rates, and December is picking up right where it left off,” said Matthew Graham, chief operating officer at Mortgage News Daily. He noted that a softer-than-expected report on job openings released Tuesday helped continue the trend.

https://www.cnbc.com/2023/12/06/mortgage-refinance-demand-jumps-as-rates-fall.html