U.S. mortgage rates drop for the first time in six weeks, falling to 7.02%, stimulating a home-buying surge
The U.S. mortgage rate has fallen to 7.02% for the first time in six weeks, driving the home purchase application index to its highest level in a year. According to data from the Mortgage Bankers Association, the contract rate for a 30-year mortgage decreased by 7 basis points, and the reduced financing costs stimulated loan activity. Although the home purchase application index has been seasonally adjusted, fluctuations may still occur. U.S. Treasury yields fell due to better-than-expected inflation data, and the market anticipates that the Federal Reserve may cut interest rates earlier
According to the Zhitong Finance APP, U.S. mortgage rates have fallen for the first time in six weeks, keeping home purchase application indicators at their highest level in a year. According to data released by the Mortgage Bankers Association (MBA) on Wednesday, for the week ending January 17, the 30-year fixed mortgage rate decreased by 7 basis points to 7.02%.
Following a surge in the previous week, the decline in financing costs further stimulated loan activity. The MBA's home purchase application index increased by 0.6%. Although the index has been seasonally adjusted, it may still experience significant fluctuations in the early weeks of the year.
Mortgage rates are typically linked to U.S. Treasury yields. Last week, U.S. Treasury yields fell due to better-than-expected inflation data, with the market anticipating that the Federal Reserve may cut rates earlier than previously thought.
This week, government bond yields continued to decline, partly because U.S. President Donald Trump did not immediately implement tariff policies early in his term. This trend may further suppress mortgage rates in next week's data.
Meanwhile, the refinancing index fell by 2.9% last week. The MBA's survey has been conducted weekly since 1990, covering feedback from mortgage bankers, commercial banks, and savings institutions. The survey data covers over 75% of retail residential mortgage applications in the United States