"ICE Mortgage Technology reported earlier this month that 3.1 million homeowners would save by refinancing, up 55% in a two-week span. The refinance market is heating up in a way we haven't seen for months, Michael Gaines, a Detroit-based senior vice president of capital markets for Cardinal Financial, told HousingWire via email. As soon as rates dipped below 6.5%, and closer to 6% for many government-backed loans, we saw refinance applications jump."
"Greg Schwartz, CEO of New York-based Tomo Mortgage, told HousingWire that the market is on the cusp of a meaningful refi wave. People who purchased homes in the past two years at rates of 7% to 8% have prime opportunities to save. But refinancing is not free, Schwartz cautioned. There are fees involved, so rates need to fall far enough below someone's existing loan to make the math work ex-fees."
"Rates of 6% or less are likely to spur more buyers and sellers into action. Existing-home sales have been sputtering for much of 2025, although data from the National Association of Realtors showed improvement in July. Existing sales rose 2% from July and were 0.8% higher on an annualized basis. Buyers are highly sensitive to rates right now; we found that 85% of active homebuyers postponed their search waiting for rates to drop, and most still believe today's rates are unusually high, Schwartz said."
About 3.1 million homeowners could save by refinancing, a 55% increase in two weeks. Refinance applications jumped as rates dipped below 6.5% and approached 6% for many government-backed loans. The refinance trend should expand into year-end if rates remain near these levels, moving more borrowers into 'in the money' territory. Homebuyers who purchased in the past two years at 7–8% have prime opportunities to lower payments, though refinancing involves fees that require rates to drop sufficiently below existing loans to be worthwhile. Rates of about 6% or less are likely to spur further buyer and seller activity.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]