The 30-year fixed rate mortgage saw the largest weekly decline since 2020 in the past week, dropping 31 basis points to 5.43 percent, reports Joel Kan, the Mortgage Bankers Association’s Vice President of economic and industry forecasting. The rate fell from 5.74 percent, having a positive effect on several areas of the real estate market.
Kan says the decline set off a domino effect with refinance index rising 2 percent from the prior week. Overall, the demand for mortgage applications rose, gaining 1.2 percent in the past week. “Lower mortgage rates, combined with signs of more inventory coming to the market, could lead to a rebound in purchase activity,” Kan said.