Mortgage Rates Drop, Sparking Uptick in Refinancing and Homebuying Activity
• Mortgage applications increased last week as mortgage rates dropped, making home loans more affordable • Refinancing activity rose 19% but remains low compared to historical levels • The average 30-year mortgage rate fell to 7.07%, down from close to 8% in late October • Homebuying demand increased slightly due to lower rates, but remains dampened by high prices and low inventory • Falling inflation raises the possibility of Fed interest rate cuts in 2023, which could lead to further mortgage rate decreases