Mortgage Refinancing Surges as Rates Plummet to Historic Lows

Mortgage refinancing activity increased by 14% last week as mortgage rates dropped, potentially signaling a reversal of the post-pandemic slump. Refinancing had boomed during the pandemic when interest rates hit record lows but declined when rates rose. The recent drop in mortgage rates has convinced some homeowners to refinance their loans, with the index measuring refinance activity reaching its highest point since early October. While the overall level of refinance applications is still low, this increase may indicate that 2023 was the low point in the refinance cycle.