The Mortgage Bankers Association has reported today that US mortgage rates have fallen to their lowest level since mid-October.
According to the Mortgage Bankers Association, survey which covers over 75% of all retail residential mortgage applications in the US, the contract rate on a 30-year mortgage decreased by 17 basis points to 6.69% for the week ending November 29.
The index of home purchase applications rose by 5.6%, reaching the highest level since the start of the year, the survey stated.
The rate drop has prompted a surge in home purchase financing during the Thanksgiving holiday week.
Mortgage rates are influenced by declining Treasury yields, as expectations grow that the Federal Reserve will lower its benchmark rate. The odds of a third consecutive rate cut at the December 17-18 meeting have slightly improved, though some policymakers remain cautious.
The MBA’s refinancing gauge has dropped for nine of the last ten weeks, marking its lowest level since May.
By CEO NA Editorial Staff
