Mortgage Refinancing Demand Sees Sharp Increase As Interest Rates Drop: Report

According to a CNBC report citing data from the Mortgage Bankers Association on Wednesday, refinancing applications witnessed a 58% jump last week.

The demand for mortgage refinancing has reportedly increased sharply over the last week, as homeowners seek to capitalize on a drop in interest rates amid economic uncertainty.

According to a CNBC report citing data from the Mortgage Bankers Association, refinancing applications experienced a 58% increase last week compared to the previous week, while the year-over-year change stood at 70%.

Of the total mortgages last week, the share of refinance applications soared to 59.8%, up from 48.8% in the preceding week, according to the report. “Homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey,” said Mike Fratantoni, MBA’s SVP and chief economist.

This comes at a time when the 30-year fixed-rate mortgages have been trending lower. Data from Freddie Mac shows that the average rate for a 30-year fixed-rate mortgage (FRM) fell to 6.35% last week, down from 6.5% the week before. The last time the mortgage rate for a 30-year home loan was lower than 6.35% was on October 10, 2024, according to data from the Federal Bank of St. Louis.

Meanwhile, U.S. equities edged lower in Wednesday’s pre-market session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.07%, while the Invesco QQQ Trust (QQQ) fell 0.08%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.07% at the time of writing.

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