Mortgage refinance demand surges 40% higher
CNBC • • business
Key Points:
- Mortgage demand surged 28.5% last week as consumers returned from holidays to find lower interest rates, boosted by President Trump's announcement that Fannie Mae and Freddie Mac would buy $200 billion in mortgage-backed bonds.
- The average interest rate on 30-year fixed mortgages briefly fell below 6% following the announcement, closing the week at 6.18%, down from 6.25% the previous week.
- Refinance applications jumped 40% for the week and were 128% higher year-over-year, driven by borrowers with larger loan sizes reacting to rate changes.
- Purchase mortgage applications increased 16% for the week and 13% year-over-year, likely due to post-holiday activity, easing home
