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Mortgages

Mortgages
US mortgage rates hit their lowest point in four years
United States mortgage rates have hit their lowest level in four years, improving prolonged gains in refinancing but leaving homebuyers unimpressed. Total mortgage applications have remained flat, rising only 0.4% compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances of $832,750 or less fell to its lowest level since September 2022. It has fallen from 6.17% to 6.09%, with points falling to 0.53 from 0.56, including the origination fee, for loans with a 20% down payment. Applications for refinancing a home loan increased 4% week-over-week and 150% year-over-year, when rates were 79 basis points higher. While the comparisons to a year ago are quite large, it is important to note that refinancing was low at this time last year. Applications for a mortgage to purchase fell 5% week-over-week but rose 12% from the same time last year. Despite lower mortgage rates improving affordability, home prices are still slightly higher than they were at this time last year, and economic uncertainty is weighing heavily on consumers. Redfin cited this uncertainty in a report sh
Mortgages
Fed's Bowman signals bank mortgage rule shift
The Federal Reserve is preparing to unveil two mortgage-related regulatory proposals aimed at strengthening and stabilising banks’ role in the United States housing finance system, according to Vice Chair for Supervision Michelle Bowman. Speaking on Monday at the American Bankers Association’s Conference for Community Bankers, Bowman said the central bank was assessing how prudential regulations may have contributed to a long-running shift of mortgage activity away from traditional banks and towards nonbank lenders. Her remarks signal a potential recalibration of post-financial crisis capital rules that have reshaped the structure of the mortgage market over the past 15 years. Bowman noted what she described as “a significant migration of mortgage origination and servicing out of the banking sector” to nonbanks since the global financial crisis. In 2008, banks originated roughly 60% of U.S. mortgages and serviced nearly all outstanding balances, she said. By 2023, however, banks’ share of mortgage originations had fallen to 35%, while their share of servicing dropped to 45%. “Taking a step back to understand the magnitude of this change, as regulators, we have a responsibility to determine whether prudential regulat
Mortgages
US refinancing activity soars as mortgage rates fall
Mortgage lenders in the United States saw a dramatic increase in volume in mid-January, with numbers being driven by refinance businesses. The Mortgage Bankers Association's (MBA) latest Weekly Mortgage Applications Survey showed overall applications rose by 14.1% on a seasonally adjusted basis week-over-week and 17% unadjusted on the week ending 16 January. This was led by refinance activity, which climbed 20% week-over-week and 183% from the same time last year. On the flip side, purchase applications only increased 5% on a seasonally adjusted basis and 18% year-over-year. This comes as the average contract for a 30-year fixed-rate mortgage for loans at or below US$832,750 decreased to 6.16% from 6.18%, with points falling to 0.54 from 0.56, including origination fee, for loans with a 20% downpayment, marking the lowest rate since September 2024. MBA vice president Joel Kan said this was driven by a decline in mortgage rates. “These lower rates prompted greater refinance activity from conventional and VA refinance borrowers, with increases of 29% and 26%, respectively,” he said. “Refinance applications accounted for more than 60% of applications, and the average loan size also moved higher.” Refinances ac
Mortgages
Trump directs purchase of $200 billion of mortgage bonds
U.S. President Donald Trump said he was instructing his representatives to buy US$200 billion in mortgage bonds in a bid to drive rates and monthly payments down. He announced the directive in a Truth Social post in what he calls one of his many steps to “restoring affordability”. “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” he said. In the post, Trump said Fannie Mae and Freddie Mac, the two government-sponsored mortgage-issuing entities, were flush with cash due to his decision not to sell them in his first term. In response to Trump’s post, the regulator who oversees Fannie and Freddie, Bill Pulte, said, "Thanks to President Trump, Fannie and Freddie will be executed”, in a post to X. Hours before Trump’s post, Pulte also told CNBC he expected Trump to decide in the next month or two on a possible initial offering of Fannie and Freddie. In his directive, Trump also slammed former President Joe Biden, claiming he had “ignored the housing market”. “Everything was broken, but I, as President of the United States, have already fixed it!” Trump said. “Now, I am giving special attention to the Housing Market.” It is not clear whether it wo
Mortgages
US mortgage applications drop after Fed's rate cut
United States mortgage applications fell last week, as mortgage rates rose following the Federal Reserve’s interest rate cut. Seasonally adjusted application volumes were down 3.8% from the previous week, the Mortgage Bankers Association (MBA) found. The 30-year fixed mortgage rate grew to 6.38% from 6.33%. “Mortgage rates inched up last week following the FOMC [Federal Open Market Committee] meeting, as investors interpreted the comments to signal that we are near the end of this rate-cutting cycle. As a result, mortgage applications declined slightly,” said MBA chief economist Mike Fratantoni. “Purchase application volume typically drops off quickly at the end of the year, and this shifts the mix of the business, with the refinance share reaching 59% last week, the highest level since September. However, refinance activity has remained mostly the same for the past month as rates continue to hold at around the same narrow range.” The Fed said last week that it would lower rates by 0.25% to a range of 3.5-3.75%, the third cut this year. Mortgage rates also increased after 2025's previous two rate cuts. Home loan refinancing applications dropped 4% last week, the MBA found, though they have climbed by 86% across the

Mortgages
US foreclosure filings rise for 8th straight month
United States foreclosure filings climbed 19% in the 12 months to October, the country’s eighth consecutive month of year-over-year increases as housing costs rise. There were 36,766 properties in the U.S. with foreclosure filings, according to an Attom report. This is also a 3% rise from September. "Even with these increases, activity remains well below historic highs. The current trend appears to reflect a gradual normalisation in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs,” said Attom CEO Rob Barber. U.S. lenders started the foreclosure process on 25,129 properties, growing by 20% year-over-year and by 6% from September. Completed foreclosures also surged, with 3,872 properties being repossessed in October. This is up 32% from the previous year and a 2% rise from September. Nationwide foreclosure rates remained under 0.5%, below historic averages of 1-1.5%. Florida had the worst foreclosure rate of any state, with one in 1,829 housing units having a foreclosure filing during October. South Carolina, Illinois, Delaware, and Nevada had the next-highest foreclosure rates. Tampa, Florida, also had the highest foreclosure rate among
Mortgages
US home buyers' mortgage applications surge 6%
United States mortgage applications for home buyers increased by almost 6% last week to their highest pace since September, despite growth in mortgage rates. Total mortgage loan applications were up 0.6% for the week to 7 November, according to the Mortgage Bankers Association (MBA). The average 30-year fixed mortgage rate was 6.34%, rising from 6.31% the previous week. “Purchase applications for conventional, FHA [Federal Housing Administration], and VA [Veterans Affairs] loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022,” said MBA vice president and deputy chief economist Joel Kan. Mortgage application volumes for home purchases increased 31% year-over-year. While MBA’s mortgage refinance index fell by 3% from the prior week, it was 137% higher than one year ago. “Higher mortgage rates did quell some refinance activity, as conventional and VA refinance applications declined over the week, and the average loan size for refinances dropped to its lowest level in over a month,” said Kan. Refinances represente
Mortgages
US 30yr mortgage rate falls to lowest in 13 months
The United States Federal Reserve once again cut interest rates, as inflation fears continue to take a backseat to concerns about a stalling labour market. The U.S. central bank said it was lowering the target for its key lending rate by 0.25 percentage points to a range of 3.75% to 4%. The rate cut comes despite the U.S. federal government shutdown nearing its one-month mark, which delayed official data. Prior to this, the Fed cut interest rates for last month for the first time since December, leading economists to expect a jump-start in further reductions; however, the lack of data leaves the future trajectory uncertain. The Fed’s latest cut also brings the target for its key lending rate down to its lowest level in three years. This comes after the Mortgage Bankers Association’s (MBA) reported that mortgage rates in the U.S. have fallen for a fourth consecutive week to their lowest level in 13 months after a key reading of inflation came in lower than expected. According to the MBA Weekly Mortgage Application Survey, the most popular 30-year mortgage fell seven points to 6.30% in the week ending 24 October. This is the lowest rate since September 2024, and with the latest drop, interest rates have fallen m
Mortgages
US mortgage rates fall to yearly lows of 6.3%
The average United States mortgage rate has eased back to its lowest in around a year to 6.3%. The average 30-year U.S. mortgage rate fell from 6.34% last week to 6.3% this week and averaged 6.32% last year, according to mortgage buyer Freddie Mac. The 15-year fixed rate mortgage also dropped from 5.55% last week to 5.53%. It was 5.41% the same time last year. Mortgage rates have continued to ease as the Federal Reserve resumed cutting interest rates amid a stagnant labour market filled with low layoffs and lacklustre hiring. There has been no surge in home loan applications as homeowners take advantage of lower borrowing costs to refinance. Despite this, Redfin, a separate real estate company, confirmed that buyers remain hesitant, with pending home sales decreasing to 1.3% from a year ago in September, marking the largest drop in five months. “The typical home that sells is taking 48 days to go under contract, a week longer than last year and the longest September span since 2019,” Redfin said. Redfin also revealed that many Americans looking to buy a home were waiting for mortgage rates to drop further before entering the market. "Some prospective buyers are also wary of making a big purchase while the e