Particle.news
Download on the App Store
37 ARTICLES
·
16h ago

30-Year Mortgage Rates Drop to 6.58%, Fueling Refinance Rush While Purchase Applications Barely Rise

A surprise uptick in producer prices casts doubt on the timing of a potential September Fed rate cut.

Image
Image
FILE - A "For Sale" sign is displayed outside a home on Friday, July 11, 2025, in Portland, Ore. (AP Photo/Jenny Kane, File)
In an aerial view, homes are seen under construction at a new housing development on August 08, 2025, in Henderson, Nevada.

Overview

  • Freddie Mac data show the average 30-year fixed rate fell to 6.58% for the week ending Aug. 14, the lowest level since October.
  • MBA figures for the week ending Aug. 8 report refinance applications surged 23% and adjustable-rate mortgage requests jumped about 25%, their highest share since 2022.
  • Purchase mortgage applications rose by only about 1% week-over-week, as high home prices and tight affordability continue to deter buyers.
  • Weaker July employment data pushed 10-year Treasury yields and mortgage rates down and raised odds of a September Fed rate cut, but a hotter-than-expected PPI print has heightened policy uncertainty.
  • Dallas Fed analysis and other research highlight that many borrowers already hold loans below current rates and that lower-income homeowners are less likely to refinance, limiting aggregate savings.