Mortgage Applications Surge as Refinances Lead the Way 🚀

Mortgage applications are soaring, jumping 11% for the week ending September 20th, according to the latest report from the Mortgage Bankers Association (MBA). This uptick is not just seasonal—it's a big shift in the market, with both adjusted and unadjusted numbers reflecting the same growth. It's the second week in a row we've seen significant increases, following last week's 14.2% spike.

So, what's fueling this surge? Refinances.

With mortgage interest rates continuing to drop, homeowners are taking advantage of the opportunity to refinance at more favorable terms. Freddie Mac reports that rates have now fallen to their lowest levels since early 2023. In the week ending September 13th, refinance applications spiked by 24% from the previous week and were up a staggering 127% compared to last year. For the week ending September 20th, refinance activity jumped another 20% and an impressive 175% from the same time last year.

With this increase in refinance activity, refinances now account for 55.7% of all mortgage applications, up from 51.2% the week before. Both conventional and government refinance applications saw big gains during this period.

"Thinking about refinancing? Now could be the perfect time. Apply now to lock in a lower rate!"

Mortgage Rates Continue to Fall

According to Joel Kan, MBA’s vice president and deputy chief economist, “Mortgage applications have hit their highest level since July 2022, boosted by a 20% jump in refinance applications after a big surge the previous week.” The 30-year fixed mortgage rate dropped for the eighth consecutive week, landing at 6.13%, while FHA loan rates dipped below the 6% threshold, coming in at 5.99%.

For many homeowners, breaking that 6% barrier is a psychological milestone, making this an attractive time to refinance or purchase.

"Ready to secure your mortgage at a lower rate? Contact us to see how much you could save."

A Slower Market for Home Purchases

While refinance activity is booming, home purchase applications remain relatively slow. As Kan explains, the seasonal slowdown in purchase activity has shifted the focus toward refinances, which now make up the majority of applications. That said, there was still a 1% increase in the Purchase Index for the week ending September 20th.

This drop in rates, combined with the moderate increase in home purchase applications, offers a great opportunity for both buyers and those looking to refinance.

Take Advantage of Lower Rates

With interest rates falling across the board, it's a good time to explore your mortgage options. Whether you're a homeowner looking to refinance or a buyer considering a new home purchase, the current market conditions are providing favorable opportunities to secure a better deal.

"Want to take the next step? Start your application today and lock in these low rates!"