The march lower in US government bond yields is rippling out into the real economy.
A drop in 30-year Treasury yields to fresh lows for the year has dragged the rate on 30-year mortgages - those favoured by Americans - down with it, encouraging homeowners to refinance existing home loans on better terms.
Demand to refinance mortgages jumped 23 per cent to the highest level since November, the Mortgage Bankers Association (MBA) said on Wednesday.
Refinancing accounted for 65 per cent of mortgage volumes last week, according to the gauges published by the MBA, the highest share since December.
Mike Fratantoni, the chief economist at the MBA, said:
"Mortgage rates have fallen close to 30 basis points over the last four weeks. Refinance application volume reached the highest level since November 2013 as a result, and the average loan balance for refinance applications increased to $306,400, the highest level in the survey's history.
Meanwhile, an index of demand for mortgages to buy homes fell 5 per cent from a week ago, the MBA said.
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