The US property market ushered in a “New Year's boom”, large interest rates hit a low level since April 2023, and refinancing picked up

The Zhitong Finance App learned that US mortgage interest rates fell to their lowest level since September 2024 last week, bringing hope for a recovery in the US housing market, which has continued to be sluggish in recent years under the pressure of high interest rates and high inflation, at the beginning of the 2026 New Year.

According to statistics released by the American Mortgage Bankers Association (MBA) on Wednesday, the contract interest rate for 30-year US mortgages fell 7 basis points to 6.25% in the week ending January 2 (including the New Year's Day holiday). Interest rates on 30-year jumbo mortgages to buy more expensive homes fell to 6.32%, the lowest since April 2023.

These figures are certainly encouraging for the US housing market, which has been hampered by affordability constraints in recent years. According to data from the National Association of Realtors (NAR), the number of contracts signed has rebounded for four consecutive months, indicating that real estate sales momentum in the US continues to increase as property buyers have just entered the new year.

As shown in the chart above, US mortgage interest rates have fallen to their lowest level in more than a year, and the significant decline in borrowing costs is expected to bring a hint of hope for growth in the US housing market.

Despite falling borrowing costs, the MBA's home buying index fell 6.2% last week after seasonal adjustments. However, it is common for buyers to decrease interest around the year-end holidays, compounded by increased market volatility. Meanwhile, the adjusted refinancing indicator unexpectedly increased by 7.4%.

The MBA survey has been conducted weekly since 1990, using detailed responses from mortgage lenders, major commercial banks, and savings institutions. The data covers more than 75% of retail residential mortgage applications in the US.