The U.S. mortgage rate has dropped to its lowest level in over a year, with refinancing demand soaring by 16% in a single week

Due to the dovish comments from the Federal Reserve and a soft employment report, the average rate for 30-year fixed-rate mortgages in the United States has dropped from 6.82% to 6.55%. The decrease in mortgage rates has led to an increase in applications, especially for mortgage refinancing applications which are most sensitive to weekly rate changes, jumping 16% last week and significantly increasing by 59% compared to the same period last year. However, the volume of purchase mortgage applications only saw a slight increase of 1% last week, and a decrease of 11% compared to the same period last year, possibly due to homebuyers waiting for lower rates and maintaining a cautious attitude towards entering the housing market