US mortgage rates fall to an 11-month low

Jinse Finance reported that U.S. mortgage rates fell to their lowest level in nearly a year last week, spurring a surge in refinancing activity and prompting potential homebuyers to enter the market. According to data released by the Mortgage Bankers Association (MBA) on Wednesday, for the week ending September 5, the 30-year fixed-rate mortgage contract rate dropped by 15 basis points to 6.49%. The rates for 15-year fixed-rate loans and five-year adjustable-rate loans also fell to their lowest levels in about a year. This decline was enough to push the MBA’s mortgage activity index—which covers both home purchases and refinancing—to its highest point in three years. If financing costs continue to fall, it will provide much-needed support for the sluggish real estate market. Residential construction has been a weak spot in the U.S. economy—dragging down GDP in four of the past five quarters. The MBA’s purchase application index rose 6.6%, reaching its highest level since the first week of July. The refinancing index jumped more than 12%, reaching its highest level in nearly a year.