Mortgage Refinance Demand Surges as Rates Hit 4-Month Low

Mortgage refinance demand has surged by 14% as mortgage rates fall to their lowest point since August. The average contract interest rate for 30-year fixed-rate mortgages decreased to 7.17%, prompting an increase in refinance applications. However, the level of refinance demand remains relatively low compared to the early years of the pandemic when rates hit record lows. Applications for home purchases fell by 0.3% as potential buyers continue to face high prices and low inventory. The upcoming monthly employment report could impact mortgage rates depending on its implications for the economy.