Mortgage Rates Drop to Lowest Level in a Year | MBA Weekly Survey

According to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey, average mortgage rates declined last week compared to the week prior. This marks a notable shift for both homebuyers and homeowners considering a refinance.

Key Highlights from the MBA Survey

• 30-year fixed-rate mortgages (conforming and jumbo balances): Rates fell, reaching their lowest level since September of last year.

• FHA-backed loans: Rates remained flat.

• 15-year fixed-rate mortgages: Rates rose slightly compared to the previous week.

Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, explained:

“Mortgage rates declined further last week, with the 30-year fixed rate falling to its lowest level since last September. Interest rates generally have moved up following the FOMC meeting last week but remain in a range that should continue to lead to increased refinance activity.”

Impact on Mortgage Applications

• Refinance activity: Up 1% week-over-week.

• Purchase application demand: Flat compared to the previous week.

Since 1990, the MBA survey has tracked 75% of all retail residential mortgage applications, making it one of the most reliable indicators of housing and lending trends.

What This Means for Homebuyers and Homeowners

With mortgage rates at a one-year low, buyers may find improved affordability in today’s market. For existing homeowners, the small drop in rates may also create opportunities to refinance into more favorable terms, even if you purchased or refinanced within the past year.