The Zhitong Finance App learned that US mortgage interest rates fell for the fourth week in a row, driving home purchase applications to the biggest increase since mid-April, bringing a hint of vitality to the sluggish real estate market. According to data released by the American Mortgage Bankers Association (MBA) on Wednesday, interest rates on 30-year fixed mortgage contracts fell 9 basis points to 7.21% in the week ending November 6. Borrowing costs have dropped nearly 30 basis points from a two-year high of 7.5% at the beginning of last month, but they are still unbearably high for many Americans.
The home purchase loan application index jumped 7.5%, the only second week-on-month increase since the end of August. The refinancing index rose 4.5%. It has been rising for three consecutive weeks, but is still close to its lowest level since January 2025.
Although falling interest rates are good news for the property market, a continued decline may be needed to stimulate potential buyers to buy homes. Second-hand housing contracts fell to a record low in September due to a rapid rise in mortgage interest rates.
The National Association of Realtors will release second-hand housing turnover data for October on Thursday. Economists expect volume to fall to its lowest level since 2010.
According to reports, the MBA survey has been conducted weekly since 1990. The respondents included mortgage bankers, commercial banks, and savings institutions. The data covers over 75% of retail residential mortgage applications in the US.