US 30-year mortgage rate slides to 11-month low, MBA data shows

Core Insights - The interest rate on the most popular U.S. home loan has dropped significantly, with a 15 basis point decrease to 6.49%, the lowest since last October, driven by a weak employment report and expectations of a Federal Reserve rate cut [1][2] Group 1: Mortgage Rates and Applications - The 30-year fixed-rate mortgage rate has decreased by 60 basis points since mid-January, leading to increased application volumes for both home purchases and refinancing [2] - The Mortgage Bankers Association's weekly applications index rose by 9.2% to 297.7, the highest level in over three years, with refinancing applications increasing by 12.2% [3] - Refinancing applications accounted for nearly half of all applications last week, while the index for property purchase loans rose by 6.6%, reaching its highest in about two months [3] Group 2: Housing Market Conditions - The housing market has been experiencing a slump due to high borrowing costs, elevated property prices, and limited supply, but recent data indicates potential recovery [4] - The supply of existing homes for sale is gradually increasing, annual price increases are leveling off, and interest rates may ease further as the Federal Reserve appears ready to cut rates [4] Group 3: Economic Context - The Federal Reserve has maintained its benchmark rate at 4.25%-to-4.50% since last December, primarily due to concerns over inflation driven by tariffs [5] - Recent job reports have underperformed expectations, with significant downward revisions to prior job growth estimates, contributing to the decline in Treasury yields and subsequently mortgage rates [6] - President Trump has been advocating for rate cuts and has exerted pressure on the Federal Reserve, including attempts to influence its leadership [7]