.png)
As predicted last month, with rates coming down and a fresh start to this year, mortgage application volume jumped significantly in early January with refinance applications up 40% and overall mortgage applications up 28% compared to recent weeks.
30-year mortgage rates are trending lower, with the national average hitting ~6.06% "," the lowest in over three years. That's down nearly a full point from last year's levels.
Lower mortgage rates are boosting affordability and sparking renewed borrower activity, especially for those locked into rates above 6%. Refinance activity surged sharply as rates dipped "," indicating homeowners are acting to reduce monthly payments and lock in long-term savings.
It appears that the current administration is also looking for different ways to help lower the costs of borrowing and to encourage movement in the real estate market. President Trump declared that he wants the government to purchase $200 billion of mortgage backed securities, the effect of which would be to greatly reduce mortgage rates. Interestingly, although no mortgage backed securities were actually purchased as a result of the directive, the market reacted to the news which caused mortgage rates to fall nearly 0.2% the next day. Unfortunately some unfavorable economic news from Japan quickly wiped out those gains.
The next Fed Reserve meeting is set for January 27-28, 2026. They are not expected to lower the fed funds rate. Regardless, with inventory still limited and more buyers hitting the market, expect those well-priced properties to sell quickly with multiple offers.
