WASHINGTON–Mortgage interest rates dropped last week to the lowest level in a month and, not surprisingly, promoted more current borrowers to look to refinance.
Overall, the volume of refinancings was sufficient to push total mortgage demand 2.8% higher compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The MBA data show the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.17% from 6.21%, with points remaining unchanged at 0.56, including the origination fee, for loans with a 20% down payment.
Treasury Yields Lower
“Treasury yields ended the week lower as weaker data on retail sales and home sales outweighed better-than-expected readings on the job market for January,” Joel Kan, vice president and deputy chief economist at the MBA, said in a statement. .
The MBA data show that applications to refinance a home loan rose 7% for the week and were 132% higher than the same week one year ago. In 2025, rates were 76 basis points higher. While that annual jump may seem large, refinancing was at extremely low levels at this time last year.
“Refinance applications increased across all loan types, marking the strongest week for refinancing since mid-January,” Kan added in a statement.
