Mortgage Rate Collapse: Suddenly the game has changed

[AJ Wong]

Mortgage rates declined to their lowest levels in over a year, a sample of more than a dozen industry professionals said they were quoting most borrowers in the high 5% to low 6% range on government loans and in the mid-6% range for conventional mortgages. High credit profile DSCR borrowers are seeing rates in the 7% range.

Quotes vary based on credit scores, points and other factors.

The lower rates haven't quite had a foothold in the market yet, meaning active buyers don't have much competition...yet. 

If lower rate trends continue and stay consistent, expect the news to reach sidelined buyers and an uptick in buyer activity towards the end of summer into the anticipated September rate cuts. 

[V.G Jason]

This can happen all it wants to. You can get a million more applications on Monday morning, it's irrelevant if the applications aren't qualified. 

Anyone who bought a low rate, isn't re-fi'ing. Anyone who bought a high rate, isn't re-fi'ing cause it's a miniscule change and cause they're likely underwater. Anyone who is a first time home buyer, likely isn't equipped with a downpayment or a solid profile right now in a precarious time as unemployment ticks up. The small % that are? Great for them.

The game hasn't changed, it's pricing for a fall. It's a proactive, not a reactive one. It should tell you what's really behind the curtains-- a nice little hit.