Refinance

Mortgage rates continued to drop this week and hit their lowest levels since November 2016, while stimulating the real estate market and the economy, according to Freddie Mac.

Mortgage application volume fell last week as the small drop in interest rates slowed refinancing activity, while economic worries likely kept purchasers out of the market, according to the Mortgage Bankers Association.

Wide short-term swings in interest rates — and loan prepayments — that we've all witnessed have serious secondary effects on consumers, lenders, investors and also policymakers.

The world's headlong dash to zero or negative interest rates just passed another milestone: Homebuyers in Denmark effectively are being paid to take out 10-year mortgages.

With long-term interest rates at historic lows, mortgage refinancing is coming on strong. But that additional revenue may not be enough to offset net interest margin pressures and lost servicing income.

Lower rates will likely sustain higher levels of origination through at least the third quarter, but supply constraints and economic weakness could limit the purchase market's response in the long term.

Mortgage rates remained unchanged this past week even with all of the upheaval in the bond markets that pushed long-term Treasury yields down, according to Freddie Mac.

Mortgage activity fell at the start of the year, but lower mortgage rates are boosting refinance volume, and Generation Z is starting to creep into the housing market, according to TransUnion.

While last week's large drop in interest rates sparked a surge in refinance activity, purchase mortgage application volume increased for the first time in over a month, according to the Mortgage Bankers Association.

There's a silver lining to the recent economic turbulence: Mortgage rates have tumbled in recent weeks, triggering a rush to refinance and a race to the closing table for many Twin Citians.