The average interest rate for a 30-year fixed mortgage dropped to its lowest point in two years as markets anticipate the Federal Reserve lowering its key interest for the first time in four years, perhaps by as much as 50 basis points.
The rate for the most popular home loan fell 14 basis points in the week ended Sept. 13 to 6.15%, marking the lowest rate since September 2022, the Mortgage Bankers Association said on Wednesday.
The rate also fell 14 basis points during the previous week.
"The 30-year fixed mortgage rate, at 6.15 percent, is now at its lowest since September 2022 and is more than a full percentage point lower than a year ago," said Joel Kan, MBA's deputy chief economist.
Read Also: Mortgage Applications Fall As Rates Climb Back Above 7%
"Refinance applications were up 24 percent – more than double last year's pace, with both conventional and government activity jumping to the fastest pace of refinancing since 2022."
The refinancing share of mortgage activity increased to 51.2% of total applications from 46.7% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.9% of total applications.
Price Action: Mortgage lenders saw gains and losses during Wednesday's trading session.
- Rocket Companies Inc. (NYSE:RKT) was down 1.35% to $20.39.
- Bank of America (NYSE:BAC) dropped 0.13% to $39.50.
- LendingTree, Inc. (NASDAQ:TREE) was up 0.27% to $58.53
Exchange-traded funds that hold these stocks also rose and fell on Wednesday.
- The Meet Kevin Pricing Power ETF (NYSE:PP) was down 0.31%.
- Adaptiv Select ETF (NYSE:ADPV) rose 0.11%.
- Davis Select Financial ETF (BATS:DFNL) was up 0.22%.
Read Now:
- 30-Year Mortgage Rates Hit 15-Month Low, But Applications Pull Back After Recent Spikes: Real Estate Stocks React Wednesday (CORRECTED)
Photo: Shutterstock