The 30-year fixed-rate mortgage has steadily fallen since July, currently sitting at an 11-month low of 6.22%. That’s led to a significant spike in homeowners seeking to refinance their mortgages.
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Home mortgage refinancing applications posted a weekly rise of 58% and a yearly rise of 70%, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ended September 12.
Refinancing Surges, but Housing Market Still Under Pressure
“Homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey,” said MBA senior vice president and chief economist Mike Fratantoni.
At the same time, the broader housing market remains constrained by limited inventory and home prices hovering near record highs. While refinancing demand has surged, a sustained recovery in home buying demand will likely hinge on both further mortgage rate relief and an improvement in supply.
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