U.S. mortgage rates hit a two-year low as rate cuts loom, stimulating a surge in mortgage applications

Due to the expectation of the Federal Reserve's upcoming interest rate cut, mortgage rates in the United States fell to the lowest level since September 2022 last week, triggering a large number of home purchase and refinancing mortgage applications. Data released by the Mortgage Bankers Association (MBA) on Wednesday showed that as of the week ending September 13th, the contract interest rate for 30-year fixed-rate mortgages dropped by 14 basis points to 6.15%. This rate has been declining for seven consecutive weeks, marking the longest duration since 2018-2019. The average contract interest rate for 15-year mortgages fell by 29 basis points to 5.42%, also the lowest level in two years. The rate for adjustable-rate mortgages dropped to 5.66%