That’s partly because rates slipped in August and the first half of September, giving homeowners and hopeful buyers a rare glimmer of hope on purchase and refinancing prospects.
Michael Hudson (pictured top), founder at the Cleveland-based Social Mortgage, told Mortgage Professional America those rate drops helped move the needle for plenty of clients.
“We’re seeing higher amounts of applicants for purchasing. People are applying to buy a house. They’re starting to be curious,” he said. “You’re seeing folks who had bought a home in the last year now asking about refinancing and saving money.
“It’s good to be able to offer somebody a better mortgage than what they have right now and it reminds us that hey, the sky isn’t falling. Rates aren’t perpetually going to go up. They’re coming back down, and we’re going to be in a spot where it’s still affordable to buy.”
The 15-year fixed-rate average also moved slightly higher, jumping by 0.06% to 5.55%. The 52-week average for that product is 5.88%, and the monthly average is 5.49%.