The housing market just flashed a key signal that it's finally thawing

Group 1 - The frozen housing market shows signs of thawing as mortgage rates decline significantly, with the 30-year fixed mortgage rate dropping to approximately 6.49% [1][2] - The 15-year fixed mortgage and 5/1 adjustable rate mortgage rates also improved, both settling around 5.7%, marking the lowest levels in nearly a year [2] - Mortgage applications surged by 9.2% in the week ending September 5, with refinancing activity increasing by 12% week-over-week and 34% year-over-year, indicating a rise in borrowing activity [3] Group 2 - Expectations of Federal Reserve rate cuts to stimulate the economy have contributed to a decrease in the 10-year US Treasury yield, which influences long-term mortgage rates [4] - The recent drop in mortgage rates has led to the highest borrower demand since 2022, with both purchase and refinance applications increasing [4] - Lower borrowing costs provide hope for potential homebuyers who have faced challenges due to limited inventory and housing affordability issues [8]