US Mortgage Refinancing Surges 35% in One Week as Rates Decline to Mid-6% Range

Aug 14, 2024, 11:14 AM

Mortgage refinancing in the United States has experienced a significant surge, with applications increasing by 35% in one week, reaching the highest level since August 2022. This rise is attributed to declining mortgage rates, which have reached their lowest level in over a year. The Mortgage Bankers Association (MBA) reported that the MBA Refinancing Index jumped by 34.5%, marking the largest increase since March 2020. Refinancing activity is up 118% from the same week a year ago. While refinancing activity has seen substantial growth, mortgage purchase demand has only slightly increased, inching up by 3%. The current mortgage rates remain in the mid-6% range, prompting potential homebuyers to cautiously re-enter the market.