(Bloomberg) \u2014 US mortgage rates fell to a fresh one-year low, encouraging more homeowners to refinance and drawing prospective buyers into the market.<\/p>\n
The contract rate on a 30-year mortgage fell 7 basis points to 6.3% in the week ended Oct. 24, according to Mortgage Bankers Association data released Wednesday. The group\u2019s measure of refinancing jumped to the highest level since mid-September, and the index of home-purchase applications rose for the first time in five weeks.<\/p>\n<\/p>\n
Most Read from Bloomberg<\/p>\n
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Mortgage rates track US Treasury yields, which dropped last week as declining oil prices eased concern about the inflation backdrop. Yields temporarily fell further after a belated report showed tame growth in US consumer prices last month, which encouraged bets that the Federal Reserve will cut interest rates beyond Wednesday\u2019s widely expected reduction.<\/p>\n
The drop in mortgage rates \u2014 if sustained \u2014 stands to potentially lull the housing market out of its years-long slumber. Sales of previously owned homes rose in September, and economists expect contract signings advanced then too, which would bode well for closings in the coming months.<\/p>\n
The National Association of Realtors will release its report on September pending-home sales later Wednesday.<\/p>\n
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.<\/p>\n
\u2014With assistance from Vince Golle.<\/p>\n
(Adds chart.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) \u2014 US mortgage rates fell to a fresh one-year low, encouraging more homeowners to refinance and drawing…\n","protected":false},"author":2,"featured_media":258774,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[7904,28,101,28693,5412,106046],"class_list":["post-258773","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bloomberg","tag-business","tag-economy","tag-mortgage-bankers-association","tag-mortgage-rates","tag-prospective-buyers"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/258773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=258773"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/258773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/258774"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=258773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=258773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=258773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}