Mortgage rates came down again last week, and with the expectation that they could fall further, mortgage demand suddenly jumped, especially for refinancing.
The Federal Reserve is expected to make its first interest rate cut in four years on Wednesday, and while mortgage rates don't follow the Fed exactly, they are influenced by policy.
"The most important takeaway is that lower mortgage rates are not only not remotely guaranteed by [the] Fed rate cut.
Even with this large jump in volume, it is coming off a very low base, as the vast majority of borrowers have loans with interest rates well below 5%.
"Homebuyers are seeing improving affordability conditions, sparked by lower rates and slower home-price growth."
Persons:
Jerome Powell's, They're, Matthew Graham, Joel Kan, Kan
Organizations:
Federal, Mortgage News, Mortgage, Labor, Fed, Association