U.S. mortgage rates fell for eight consecutive weeks, setting a record, and sparking another wave of refinancing frenzy.

As the cost of borrowing in the US falls to the lowest level in two years, refinancing mortgage applications have surged for the second consecutive week, indicating a steady demand in the real estate market. Data from the Mortgage Bankers Association (MBA) shows a 20.3% increase in the refinancing index, with the 30-year fixed mortgage rate dropping to 6.13% for the eighth straight week. According to the MBA data, in the week ending September 20th, mortgage refinancing activities in the US saw a significant increase, with the refinancing index reaching its highest point since April. The 30-year fixed mortgage rate fell by 2 basis points to 6.13%, marking the longest consecutive decrease since 2018-2019. This trend led to a 1.4% rise in the purchase application index, reaching its highest level since early February, and increasing for the fifth consecutive week, indicating a growing and gradually solidifying demand in the real estate market. However, housing financing costs may start to stabilize. The 10-year US Treasury bond yield saw a slight increase last week as traders discussed the extent of the Fed's rate cut in November and future rate cut paths. Additionally, after significant declines in the previous two weeks, the average contract rates for 15-year and 5-year adjustable-rate mortgages saw a slight rebound last week. The MBA survey, conducted weekly since 1990, covers over 75% of retail residential mortgage applications in the US, gathering feedback from mortgage bankers, commercial banks, and savings institutions. This data provides important insights into current mortgage trends for the market.