Mortgage Rates Dip, Homeowners Dive into Refinancing!

Good news for homeowners! Mortgage rates dipped in May, prompting a wave of refinancing applications. There was a 25.6% month-over-month surge in rate-and-term refinance lock volume in May.  According to Optimal Blue, people are jumping at the chance to snag lower rates and potentially save big bucks.

Rates Down, Applications Up!

Rates for a 30-year fixed mortgage dropped from around 7.2% to just over 7% in May (data from Optimal Blue and Freddie Mac). The overall number of mortgage applications climbed in May, including refinances, new home purchases, and cash-out refinances. However, it’s important to note that applications were still lower compared to May 2023.

Seasonal Shifts and Market Swings

Hey, the market is like the weather – always changing! Seasonal stuff like holidays can affect application numbers, and this year was no different. But the bigger story is fluctuating rates. Those May rates? They couldn’t quite commit to staying low. Experts say significant drops are unlikely unless the Federal Reserve lowers its benchmark rate.

Refinancing: A Potential Money Saver

Refinancing can be a game-changer, lowering your monthly payments and saving you money over time. It can also allow you to switch from an adjustable-rate mortgage (ARM) to a more stable fixed-rate option.

Realtors: Your Guide to Refinancing

Thinking about refinancing? Realtors are your refinancing superheroes! Here’s how they can help:

• Stay on top of the latest rate changes.
• Explain the benefits of refinancing.
• Help you find opportunities even in a fluctuating market.
• Keep you calm and informed throughout the process.
• Partner with the right loan officer for you.

Ready to Explore Your Options?

If you’re considering refinancing, contact your friendly neighborhood Intercap Lending loan officer! They’ll help you navigate your options and get the latest rate updates.

Forbes Mortgage Rate Forecast(https://www.forbes.com/advisor/mortgages)

CNBC on Interest Rates (https://www.cnbc.com)

Optimal blue.com