Fri Sep 12 07:50:00 UTC 2025: **Summary:**

Mortgage rates have significantly dropped this week, marking the largest weekly decrease in a year. This decline has spurred a surge in mortgage applications, particularly for refinancing, indicating a potential shift in the housing market after a period of slump. The Federal Reserve’s potential move to cut interest rates in the near future is contributing to the positive outlook.

**News Article:**

**Mortgage Rates Plunge, Sparking Surge in Homebuyer Interest**

**NEW YORK (FOX Business) –** Mortgage rates experienced their most significant weekly drop in the past year, according to Freddie Mac, igniting a surge in mortgage applications and raising hopes for a revitalization of the struggling housing market.

The average rate on a 30-year fixed mortgage tumbled to 6.35% from 6.5% the previous week, while the 15-year fixed mortgage rate fell to 5.5%. This decline spurred a 9.2% increase in mortgage applications, with refinancing applications leading the charge, jumping 12.2% to their highest level in nearly a year.

“Mortgage rates are headed in the right direction, and homebuyers have noticed,” said Sam Khater, Freddie Mac’s chief economist. Purchase applications reached their highest year-over-year growth rate in over four years.

The housing market has been grappling with high borrowing costs, elevated property prices, and limited supply. However, recent data suggests the worst may be over. The supply of homes for sale is gradually increasing, and annual price increases are leveling off.

Adding to the optimism, the Federal Reserve is considering cutting interest rates as early as next week, a move that could further ease borrowing costs and stimulate the market.

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