The average 30-year mortgage rate has decreased to 3.43%, marking a 5 basis point drop this week and approaching its all-time low of 3.31%. This rate is significantly lower than last year's average of 3.91%. The decline in rates has spurred a 50% increase in refinancing activities compared to last year, alongside a 6% rise in purchase activity. This drop in mortgage rates comes after the Fed decided to keep its target Federal Funds Rate unchanged, with the likelihood of a second rate hike declining to below 35% in the futures market.
The average rate for a benchmark 30-year mortgage has dropped to 3.43 percent, which is down 5 basis points over the past week.
Refinancing activity is up over 50 percent versus the same time last year while purchase activity is up 6 percent.
The drop in rates over the past week followed the Fed's announcement that it would leave the target Federal Funds Rate unchanged.
The probability of the Fed enacting a second rate hike by the end of the year has dropped below 35 percent according to the futures market.
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