Mortgage rates in the US extended their decline, reaching the lowest point in almost a year.

The average for 30-year, fixed loans was 6.26%, the lowest since early October and down from 6.35% last week, Freddie Mac said in a statement.

Borrowing costs have fallen significantly enough in the past couple of months to spur a surge in refinancing, with the Mortgage Bankers Association’s measure of activity jumping to the highest level since early 2022.

Lower rates could help ease affordability challenges for house hunters, but may also come at the cost of greater economic uncertainty, which will hold back some would-be buyers.

Signs of weakening in the labor market largely drove the Federal Reserve’s decision to cut interest rates by a quarter-point Wednesday. It was the central bank’s fir

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