Mortgage Rate Drop Biggest Since July 2022

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell across all loan categories last week, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The decline was the biggest week-over-week decrease since July 2022. Joel Kan, MBA's vice president and deputy chief economist, says there are a few reasons for the improvement. “Last week's decrease in rates was driven by the U.S. Treasury's issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market,” Kan said. Lower rates helped push the Market Composite Index – which measures overall demand for mortgage applications – up 2.5 percent from the week before, including a 3 percent increase in demand for loans to buy homes. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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