#8 - Dropping Mortgage Rates Send Americans Scrambling to Refinance Loans

Mortgage rates have fallen to their lowest level since August, lender Freddie Mac said on Thursday, sparking a refinancing of loans, suggesting homeowners were quick to jump at opportunities to save on their mortgage payments.The 30-year fixed rate mortgage fell to an average of about 7 percent for the week, a drop of nearly one percent from a little over a month ago."The 30-year fixed-rate mortgage averaged near 7 percent this week, down from nearly 7.80 percent just six weeks ago," said Sam Khater, Freddie Mac's chief economist, said in a statement. The difference in rate could save the average homeowner more than a hundred dollars a month.The fall in rates fueled a mortgage loan refinancing frenzy, the Mortgage Bankers Association (MBA) said. Its Refinance Index jumped by 14 percent from the previous week and was 10 percent higher than the same week one year ago, lenders said."Refinance applications saw the strongest week in two months, increasing on a year-over-year basis for the second consecutive week for the first time since late 2021," Joel Kan, MBA's deputy chief economist, said in a statement on Wednesday.