Mortgage Interest Rates Decrease in the US: Applications Show an Increase

Mortgage Interest Rates for 30-Year Fixed Loans in the U.S. DeclinedThe average interest rate for a 30-year fixed mortgage in the U.S. fell from 6.50% to 6.44% last week. Mortgage applications saw an increase of 0.5%. The Mortgage Bankers Association (MBA) released data for the week ending August 23. According to this data, mortgage applications rose by 0.5% compared to the previous week.
Changes in Applications and Interest RatesDuring this period, applications for home purchases increased by 1%, while refinancing applications decreased by 0.1%. The average interest rate for a 30-year fixed mortgage in the country dropped from 6.50% to 6.44% last week. Similarly, the average interest rate for a 15-year fixed mortgage also declined from 6.04% to 5.88% during the same period.
Lowest Level Since April 2023Joel Kan, MBA Vice President and Deputy Chief Economist, highlighted that mortgage rates have fallen for the fourth consecutive week, marking the lowest level for 30-year fixed mortgage rates since April 2023. Kan noted that mortgage rates have decreased by more than 80 basis points compared to a year ago.
Joel Kan also stated, ‘As observed in recent weeks, despite lower rates, purchase applications have not changed significantly. Potential homebuyers are now acting patiently as rates decline and the inventory of homes for sale begins to increase.’ (Sigorta Haber)