US 30-year mortgage rates dipped to 6.26%, down from 6.35% the previous week, mirroring a decline in Treasury bond yields. This follows the Federal Reserve's first rate cut of the year. 15-year mortgage rates also fell to 5.41%. The decrease, driven by expectations of further rate cuts, is expected to modestly boost home sales, although many homeowners with low rates may lack incentive to refinance. Mortgage applications surged nearly 30% last week, with refinancing accounting for a significant portion. Demand for adjustable-rate mortgages is also increasing.

Prepared by Christopher Adams and reviewed by editorial team.