Mortgage rates edge down, refinancing applications tick up

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Mortgage rates continued to edge down, bringing about an uptick in refinancing applications, according to [https://seekingalpha.com/pr/20237649-mortgage-rates-continue-to-move-down] the latest Freddie Mac Primary Mortgage Survey.

30-year fixed-rate mortgages averaged 6.26% as of September 18, down from 6.35% last week but higher than 6.09% in the year-ago week.

15-year fixed-rate mortgages averaged 5.41%, compared to 5.50% last week and 5.15% a year ago.

"Mortgage rates decreased yet again this week, prompting many homeowners to refinance," said Sam Khater, Freddie Mac's chief economist.

"In fact, the share of mortgage applications that were refinances reached nearly 60%, the highest since January 2022," added Khater.

Separately, the Federal Reserve trimmed [https://seekingalpha.com/news/4495784-federal-reserve-lowers-rate-by-25-basis-points-first-cut-since-december] its policy rate by 25 basis points to 4.00%-4.25% on Wednesday, acknowledging a softening labor market even as inflation perked up in recent months.

The Fed sees [https://seekingalpha.com/news/4495758-fed-sees-two-more-25-bp-cuts-this-year-as-jobs-cool-dot-plot] two more 25-bps cuts this year.

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* Mortgage demand surges, refinancing activities jump on lower rates [https://seekingalpha.com/news/4495591-mortgage-demand-surges-by-297]
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