Mortgage rates dropped this week to their lowest point in over a year, largely due to an apparent overreaction to a weaker-than-expected employment report and recent financial market volatility, even though the economy remains strong. This decrease in rates enhances the purchasing power of potential homebuyers, which may spark increased interest in entering the market.
According to Freddie Mac, the average 30 year fixed rate dropped to 6.47%, while the 15 year fixed rate fell to 5.63%.
Furthermore, the lower rates are giving existing homeowners more opportunities to refinance, with the refinance share of mortgage applications rising to nearly 42 percent, the highest level since March 2022.
