14.01.202612:30:16UTC+00US Mortgage Rates Fall Further: MBA

In the week concluding on January 9, the average contract interest rate for 30-year fixed-rate mortgages on conforming loans, those valued at $806,500 or less in the United States, declined to 6.18%, reaching its lowest level since September 2024. This data, provided by the Mortgage Bankers Association, marks the fourth consecutive week of rate reductions. This decline illustrates typical post-holiday volatility and was further influenced by President Trump’s directive for Fannie Mae and Freddie Mac to acquire $200 billion in mortgage-backed securities, aimed at reducing mortgage rates. Consequently, mortgage demand increased by 28.5%, with refinancing applications rising by 40.1% and home purchase applications climbing by 15.9%. Joel Kan, an economist with the MBA, stated, “Rates began to decrease slightly before that period, possibly as a rebound from the holidays, although we accounted for the holiday in the previous week's results. It’s always a turbulent time. However, this was a genuine movement resulting from the rate drop. Spreads were tightening even before the announcement.”