Mortgage Refinance Demand Surges as Rates Hit Lowest Level in Months

Mortgage refinance demand surged by 19% after mortgage rates hit their lowest level since July. The average contract interest rate for 30-year fixed-rate mortgages decreased to 7.07%, prompting homeowners to seek savings through refinancing. Applications for mortgage refinancing were 27% higher compared to the same week last year. Meanwhile, applications for home purchases rose by 4% but remained 18% lower than the previous year. Despite lower mortgage rates, the housing market still faces challenges such as high prices and limited inventory. The Federal Reserve's upcoming meeting and comments from Chair Jerome Powell may impact mortgage rates.