Mortgage Rates Plummet, Igniting Refinance Surge
Mortgage rates have fallen for the sixth consecutive week, reaching just above 7%, which has sparked some activity in the refinance market. While the dip in rates has enticed homeowners looking to refinance, potential homebuyers remain hesitant, resulting in a depressed housing market. The shortage of inventory and elevated home prices have contributed to the lack of activity. Some buyers have turned to adjustable-rate mortgage loans (ARM) as an alternative, while others have shifted their focus to new construction. The refinance market has seen a boost, with applications increasing by 14% from the previous week. However, overall refinance activity remains low, and it is uncertain if this increase signals a recovery in the market.