TechFlow News: In the U.S., the MBA mortgage loan application activity index rose slightly to 233.7 for the week ending September 6, while the 30-year fixed mortgage rate dropped sharply by 14 basis points to 6.29%, the lowest level since February 2023.
Mortgage rates followed the decline in U.S. Treasury yields, with the 10-year yield falling 20.1 basis points, as weak economic data fueled risk-off trading in equity markets and bolstered expectations for interest rate cuts.
Joel Kan, MBA Vice President and Deputy Chief Economist, noted regarding home purchases: "Despite lower rates, affordability challenges and other factors such as limited inventory may still hinder buying decisions." He added that on refinancing, "refinancing potential remains limited because many borrowers still have rates below 5%." As rates continue to fall, some homeowners could benefit from refinancing, which would be a positive development.
