"U.S. Economy Weakens, Triggering Steep Drop in Mortgage Rates"

Mortgage rates in the U.S. experienced their sharpest drop in over a year, falling by 25 basis points, amid signs of a weakening economy. This led to a small boost in mortgage demand, with the overall market composite index rising by 2.5% compared to the previous week. Home-buying and refinancing activity also increased as rates fell, with the purchase index rising by 3% and the refinance index increasing by 1.6%. The average contract rate for a 30-year mortgage decreased, providing an opportunity for aspiring homeowners to enter the market. However, low inventory remains a constraint on home-buying activity.