U.S. Mortgage Rates Fall Again, Sparking Massive Refinancing Wave

Mortgage refinance applications surged for a second straight week as more Americans take advantage of the cheapest borrowing costs in two years, according to Golden Ten News. The Mortgage Bankers Association's refinance index jumped 20.3 percent to its highest level since April 2022 in the week ended Sept. 20, according to data from the association.The rate on 30-year fixed mortgage contracts fell 2 basis points to 6.13 percent, marking the eighth consecutive week of declines and the longest sustained decline since the 2018-2019 period. That pushed the association's home purchase applications index up 1.4 percent last week to its highest level since early February. The index rose for the fifth consecutive week, suggesting that rapidly growing demand in the housing market is finding some footing. Meanwhile, housing finance costs may be starting to stabilize. The yield on the 10-year U.S. Treasury note edged higher last week as traders debated the magnitude and path of the Federal Reserve's expected rate cut in November.