US 30-year mortgage rate falls to two-year low of 6.15%

The interest rate for the most popular U.S. home loan fell last week to its lowest level in two years, on anticipation the Federal Reserve will start cutting interest rates on Wednesday, potentially by as much as a half of a percentage point.

The average contract rate on a 30-year fixed-rate mortgage dropped 14 basis points in the week ended Sept. 13, to 6.15%, the Mortgage Bankers Association said on Wednesday. That was the lowest rate since Sept 2022, and followed a 14-basis-point drop the previous week.

Applications for home loans for purchases and refinancing jumped last week, the MBA said, citing lower borrowing costs and improved housing affordability as home prices rose more slowly.

Applications to refinance existing home loans now account for more than half of all mortgage applications, the data show, and are above the historic median of 48%.

 

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