Market Update: Refinance Applications Surge Following Rate Drop

Blog posted On August 09, 2024

Following last week’s downward trend in mortgage rates, the number of refinance application submissions surged 16% week-over-week. Compared to the same period last year, the Refinance Index was up 59%. Lower rates mean more people could benefit from refinancing their mortgage and saving on their monthly mortgage payment.

Reasons to refinance when rates are low

• Pay less on your mortgage each month*
• Save more on interest over the life of your loan
• Switch from an adjustable rate to a fixed rate

In other industry news…

Initial jobless claims saw the largest decline in almost a year, calming the job market crash fears. Though this is good in a broader economic sense, it could impact rate trends. A weaker job market and slower economy typically correlate to lower mortgage rates.

Coming up next week

This week was relatively quiet in terms of housing reports and mortgage news. Next week, we have the consumer price index for July, which will update us on the inflation trend.

If you have any refinance questions or want to see a personalized refinance scenario, let us know!

*By refinancing the existing loan, the total finance charges may be higher over the life of the loan

Sources: Bloomberg, Mortgage Bankers Association, Mortgage News Daily,