U.S. 30-Year Mortgage Rate Declines to Three-Year Low
The rate slipped from 6.17% the prior week, while the average 15-year mortgage rate edged marginally lower, moving from 5.50% to 5.48% over the same period.
Despite the rate relief, overall mortgage application volume rose only modestly, gaining 0.4% for the week ending January 20 compared to the previous week. The breakdown revealed a divergence in borrower behavior: applications for home purchases declined 5%, even as refinancing activity surged 4% — suggesting existing homeowners were quicker to capitalize on the rate dip than prospective buyers.
Joel Kan, vice president of the MBA, attributed the drop in borrowing costs to falling Treasury yields, confirming that the benchmark 30-year rate has now reached its lowest point since September 2022.
The data offers a potential tailwind for the sluggish housing market, though the pullback in purchase applications signals that affordability constraints and limited inventory continue to weigh on buyer confidence even as financing costs ease.
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