Mortgage rates are finally heading in the right direction, which is great news for homeowners and buyers alike. After months of staying above 7%, average mortgage rates have dipped back into the mid-6% range, making now an ideal time to consider refinancing.
Let’s make the most of these changing market conditions. Whether you’re looking to refinance, lower your monthly payments, or simply explore your options, now is the time to take action.
Rates Hit the Lowest Point Since April
According to recent data from the Mortgage Bankers Association (MBA), the average rate for a 30-year fixed mortgage dropped to 6.79%, the lowest since early April. Meanwhile, 15-year fixed mortgage rates also fell to 6.06%.
↳ These drops have triggered a noticeable rise in refinance applications as more homeowners look to take advantage of better terms.
Refinancing has become more popular lately, with a 7% increase in applications just last week. In fact, VA loan refinances jumped by 22%, and conventional refinances went up by 10%.
As rates go down, many homeowners, especially those with bigger loans, are jumping at the chance to save money over time by refinancing now.
Refinancing Is on the Rise
Refinancing now makes up over 40% of all mortgage activity, and it's easy to see why. Compared to this time last year, refinance activity is up 40%. That means more and more homeowners are seizing the opportunity to lock in better rates, lower their monthly payments, or tap into home equity.
And here’s the good news: Loan Factory is making the refinance process simpler than ever. With our smart technology and helpful loan experts, we’ll guide you through the process step by step, ensuring you get the best possible deal for your unique situation.
What About Home Purchase?
While refinance applications are booming, the home purchase market remains steady. Purchase activity has only moved slightly, mainly due to ongoing affordability challenges and uncertainty in the market. However, new home listings are rising, and that’s beginning to help slow the pace of home price growth, giving buyers a bit more breathing room.
Even with higher prices in some areas, homebuyers are still showing interest. In fact, purchase applications are 16% higher than this time last year, showing that many are starting to re-enter the market with cautious optimism.
In Conclusion,
As mortgage rates trend downward and home listings increase, the housing market is beginning to shift in a more buyer-friendly direction. Whether you're looking to refinance for better terms or get ready to buy your first home, now is a smart time to explore your options.
With lower rates and more options available, Loan Factory is here to help you take the next smart step in your homeownership journey. Connect with Loan Factory to see how much you could benefit today!
Visit www.loanfactory.com today to get started.
