Summary
Home mortgage applications have increased because interest rates for 30-year fixed-rate mortgages have dropped to 6.35%, the lowest rate since October 2024. This decline in rates is happening as Treasury yields fall, linked to signs of a weaker job market.
Key Facts
- Mortgage rates have dropped to 6.35%, the lowest since October 2024.
- The rate fell from 6.5% the previous week and had been above 6.5% for most of the past year.
- Purchase applications for homes have increased significantly, reaching the highest year-over-year growth in over four years.
- Applications to buy and refinance homes rose on a weekly and annual basis.
- Nearly half of all mortgage applications were for refinancing.
- The drop in rates is partly due to lower Treasury yields, influenced by a weakening job market.
- A recent jobs report showed only 22,000 new jobs added in August.
- The Federal Reserve is expected to cut interest rates soon, but this may not immediately lead to further mortgage rate drops.
