Latest news with #FlyhomesMortgage
USA Today
03-07-2025
- Business
- USA Today
Refinance applications surge as mortgage interest rates tick down
Americans are seizing any opportunity to refinance their mortgages. In the week ending June 27, applications to refinance rose 7%, the Mortgage Bankers Association, an industry group, announced on July 2. Rates for home loans fell to the lowest since April that week, with the popular 30-year fixed-rate mortgage averaging 6.79% nationwide. Refinance applications were a whopping 40% higher than a year earlier. In contrast, applications for purchase mortgages were unchanged. The big jump in refinance application volumes is somewhat surprising given the small move in rates. 'Despite the small decline, mortgage rates continue to hover in the same 6%-7% range seen over the past year,' pointed out Kara Ng, a senior economist at Zillow, in a statement following the release. 'Rates remain stuck in this range, reflecting competing economic signals: signs of a gradually cooling economy argue for lower rates, while persistent inflation supports upward pressure." "Homeowners are looking for any chance to save money on their housing costs, and even small savings can make a difference right now given the total cost of housing," said Dan Richards, President of Flyhomes Mortgage, in an email exchange with USA TODAY. "That's part of what's driving the recent uptick in refinancing," Richards continued. "A lot of people who bought in the last few years have been waiting for mortgage rates to fall below that 'magic' 6% mark to refi, but another year has passed and it's becoming clear that rates in the 6-7% range are the new normal." Many economists, including Zillow's Ng, expect rates to make little moves from here, and traders in mortgage futures now expect the 30-year fixed-rate mortgage to average about 6.7% in November, according to the ICE Mortgage and Housing Market Research team.
Yahoo
03-04-2025
- Business
- Yahoo
Tariffs are slamming financial markets. Mortgage rates won't fall as hard.
Rates for home loans dropped slightly, but may not go much lower as uncertainty from Washington shrouds the housing market. In the week ending April 3, 30-year fixed-rate mortgages averaged 6.64%, Freddie Mac announced Thursday. That's down fractionally from 6.65% last week and 6.67% the week before. Those figures don't include fees or points, and rates in some parts of the country may be higher or lower than the national average. Mortgage rates have bounced within a narrow range since the start of the year even as U.S. bond yields have tumbled. The 30-year fixed-rate mortgage has long moved alongside the 10-year Treasury note, since fixed-income investors see the two as roughly similar. As a reminder, yields (rates) move in the opposite direction from prices. If investors are selling fixed-income products, prices go lower and yields higher. But if there's more demand, prices go higher and yields fall. Here's another way to think of the relationship between yields and prices: if a financial product is seen as riskier, the issuer must pay more – a higher rate – to attract an investor. Anxiety about Washington policy has led investors to sell riskier assets, like stocks, and buy those seen as less risky, like bonds. The S&P 500 is down about 7% since the start of the year, while the 10-year has lost more than 50 basis points – a good chunk of that in the first few days of April, as investors digested the new tariff policies from the White House. But most housing insiders don't expect mortgage rates to fall as far. 'While the 10-year yield may continue to edge lower, mortgage rates are unlikely to fall as quickly, or as much, because the market is navigating a lot of uncertainty,' said Dan Richards, president of Seattle-based Flyhomes Mortgage, naming tariffs as a key source of that uncertainty. 'Despite expectations of rate cuts later this year, the Fed's stance remains cautious, even restrictive,' Richards said in an email. 'That tension between falling yields and lingering risks means mortgage rates may take a more hesitant path downward.' It's a cruel irony that mortgage rates are most likely to hit a bottom when the economy is weak enough that many people won't want to, or won't be able to, buy homes. While recessions often bring economic uncertainty, they can also shift the dynamics of affordability, notes Dale Baker, president of Home Lending at KeyBank. Lower interest rates could improve buying power for well-qualified borrowers, potentially opening doors that were previously out of reach. At the same time, Baker noted, tighter credit conditions and job market instability may widen the gap between those ready to buy and those pushed to the sidelines. This article originally appeared on USA TODAY: Mortgage rates dip, but tariffs will slam these markets harder Sign in to access your portfolio
