Ahead of the September Fed meeting, mortgage rates reached a three-year low. The average rate on a 30-year fixed mortgage rate is 3.56%, according to Freddie Mac. The yield on the 10-year Treasury note—currently around 1.75%—is used as a benchmark for different types of loans, including mortgages.
For those who are considering refinancing, falling rates could mean it is a good time to do so. Since the Fed’s last rate cut in July, mortgage refinancing has ticked up. Applications were up 169% in the first week of September from a year ago, according to the Mortgage Bankers Association.