Mortgage Rates Post Biggest Drop in a Year, Spurring Refi Rush

Mortgage rates in the US fell by the most in a year, fueling a surge in refinancing demand from homeowners looking to save money.

The average for 30-year, fixed loans was 6.35%, down from 6.5% last week, Freddie Mac said in a statement.

Borrowing costs have been trending lower for months, and took another leg down after a disappointing jobs report Friday increased the likelihood of more rate cuts from the Federal Reserve.

By Monday, consumers were able to lock in 30-year rates at 6.27%, the lowest in almost a year, according to data from Texas-based Optimal Blue, ...