Mortgage Refinancing Soars as Rates Plummet to 5-Month Low

Mortgage refinancing surged nearly 20% as mortgage rates dropped to the lowest level since July. The overall market composite index, a measure of mortgage application volume, rose 7.4% in the latest week, with a notable increase in FHA and VA refinance applications. Home-buying and refinancing activity increased due to lower rates, but economists expect rates to continue falling, potentially stimulating home-buying. However, with most homeowners already having low rates, it may take time for sales activity to pick up. The Federal Reserve's pivot to cutting rates next year is supported by a slowing economy.