Mortgage Rates Drop to Lowest Level Since October: What It Means for Homebuyers and Homeowners

According to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey, average mortgage rates fell again last week, marking the lowest level since October. This is welcome news for both homebuyers and homeowners looking to refinance, as rates declined across most loan categories.

The survey showed rate drops for:

• 30-year fixed-rate mortgages with conforming balances

• FHA-backed loans

• 15-year fixed-rate loans

• 5/1 adjustable-rate mortgages (ARMs)

With borrowing costs easing, demand picked up quickly. The MBA reported that overall mortgage application activity—including both purchase and refinance—was up nearly 30% compared to the prior week.

Refinancing Leads the Way

Mike Fratantoni, MBA’s senior vice president and chief economist, noted that refinancing applications saw the biggest surge.

“Homeowners responded swiftly, with refinance application volume jumping almost 60 percent compared to the prior week,” Fratantoni said.

Notably, homeowners with larger balances moved first, as the average refinance loan size reached a 35-year record high in the MBA’s survey. Nearly 60% of total mortgage applications last week were refinance requests, though purchase applications also saw a solid increase.

Why This Matters for Borrowers

For buyers who have been waiting for an opportunity, lower mortgage rates improve affordability and increase purchasing power. A drop in rates means lower monthly payments, which can make qualifying for a home loan easier.

For current homeowners, now may be the right time to refinance your mortgage—whether to reduce monthly payments, shorten your loan term, or tap into home equity.

A Trusted Survey Since 1990

The MBA’s Weekly Applications Survey has been conducted since 1990 and covers 75% of all retail residential mortgage applications nationwide, making it a reliable benchmark for mortgage industry trends.

✅ Key Takeaway: With mortgage rates now at their lowest level in nearly a year, both homebuyers and homeowners considering refinancing have a unique opportunity to act before rates shift again.

👉 Thinking about buying a home or refinancing your mortgage? I can help you explore your options, run the numbers, and find the best loan program for your situation.

📞 Call or text 856-263-8111 or visit www.newhomeapproval.com to get started today!