US Mortgage Rate Drops to Four-Month Low, Boosting Refinancing

US mortgage rates fell to the lowest level in almost four months last week, spurring the biggest demand for refinancing since February.

The contract rate on a 30-year fixed mortgage decreased 20 basis points to 7.17% in the week ended Dec. 1, according to the Mortgage Bankers Association. The rate has fallen 69 basis points in the last five weeks, the biggest drop over such a time period since late 2008.

Mortgage News Daily, which updates more frequently, put the 30-year fixed mortgage rate at 7.08% on Tuesday.