Overview

• Mortgage rates have fallen to their lowest level since August, with the average rate on a 30-year loan dropping to 7.17%.
• The drop in mortgage rates has led to an increase in both home-purchase applications and refinancing activity.
• Mortgage refinancing rose 14% last week from the week before, hitting its highest point since early October.
• Despite the increase in activity, the overall level of refinance applications remains low compared to historical standards.
• The drop in rates is attributed to slower inflation and financial markets anticipating the end of the Federal Reserve's rate-hiking cycle.