FX.co ★ US Mortgage Rates Fall to 4-Month Low: MBA

The Mortgage Bankers Association reported a drop in the average interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $806,500) in the U.S., declining by 10 basis points to 6.67% for the week ending August 8, marking the lowest rate in four months. Concurrently, mortgage application volume increased by 10.9% from the prior week, reaching its highest rate in two months. Joel Kan, an economist with the MBA, noted in a statement that there was a notable increase in the average loan size to $366,400 during this period, with borrowers handling larger loans appearing more responsive to changes in rates. Furthermore, due to the comparative appeal of adjustable-rate mortgage (ARM) rates relative to fixed-rate loans, applications for ARMs jumped by 25%, reaching their highest level since 2022, with ARMs comprising nearly 10% of all applications.