Earlier this week, mortgage rates fell to their lowest level since April 2023. This drop in rates led to an increase in mortgage applications, particularly a surge in refinance applications. Refinancing your mortgage rate to be just 1% lower can significantly reduce your monthly payment, so it makes sense why many homeowners are refinancing given the substantial drop in rates.
For the week ending August 2, the 30-year fixed mortgage rate dropped to 6.55%, down from 6.82% the previous week, according to the Mortgage Bankers Association (MBA). And on August 5, rates dropped even lower — falling to an average of 6.34%, according to Redfin. Although rates have since risen to 6.47% (as of August 8) that’s still close to the lowest level they’ve been in over a year.
