Mortgage Rates Drop to Lowest Level in a Month, Sparking Refinance Surge

According to the Mortgage Bankers Association (MBA) Weekly Applications Survey, average mortgage rates declined across every major loan category last week — including 30-year fixed-rate conforming loans, jumbo loans, FHA loans, 15-year fixed-rate loans, and 5/1 adjustable-rate mortgages (ARMs). This marks the lowest level in roughly a month, offering new opportunities for homeowners and buyers alike.

Joel Kan, MBA’s vice president and chief economist, noted that the dip in rates led to a notable increase in refinance activity. “The refinance index increased 4 percent, driven by a 6 percent jump in conventional refinances and a 12 percent rise in FHA refinance applications, as borrowers remain attentive to these opportunities to lower their monthly mortgage payment,” Kan said.

While refinance demand strengthened, purchase applications fell 5 percent week-over-week, though buyer activity remains 20 percent higher than this time last year, showing continued market resilience despite fluctuating affordability.

The MBA’s weekly mortgage survey, which has been conducted since 1990, covers approximately 75 percent of all retail residential mortgage applications, making it one of the most reliable indicators of nationwide lending trends.

For buyers considering entering the market or homeowners looking to refinance and lower monthly payments, now may be an ideal time to review options and take advantage of the latest rate movement.