Mortgage Rates Plummet to 4-Month Low, Boosting Refinance Activity

US mortgage rates have fallen for the sixth consecutive week, reaching their lowest level in nearly four months, according to Freddie Mac. The decline is attributed to a bond market rally that has driven down yields on securities used to set mortgage costs. The average rate on a 30-year fixed rate mortgage dropped to 7.03% from 7.22% the previous week, marking the lowest rate since mid-August. This comes after mortgage rates reached their highest levels in over two decades in October, but have since fallen due to expectations that the Federal Reserve will halt its aggressive tightening campaign to control inflation.