Estimated read time: 2-3 minutes
SALT LAKE CITY — Lenders in Utah and across the country are seeing an uptick in people looking for mortgages.
The Mortgage Bankers Association reported Wednesday that mortgage applications were up 11% week over week, driven by falling mortgage rates. The national average for mortgage rates sat at 6.19% on Wednesday, according to Mortgage News Daily – a noticeable decrease over the last few months.
It's the same story in Utah.
"We're absolutely noticing an uptick in interest and an uptick in activity and an uptick in applications in the last 10 to 14 days," said Lauren Patterson, a lender who sits on the board of the Utah Association of Mortgage Professionals.
Patterson noted the increased activity in Utah is for both refinances and new purchases.
Emma Nelson, who bought a townhome in Syracuse earlier this year, is one of those looking to refinance. When she and her husband closed on the purchase in March, their interest rate was 7.625%.
"It was insane," Nelson said.
Ever since then, the couple has hoped to eventually lock in a lower rate, and they feel the right time is almost here.
"We're just waiting to pull the trigger," Nelson said.
Rates on the decline
Patterson said mortgage rates are expected to continue to decrease over the next 12 to 18 months, especially if the Federal Reserve continues cutting interest rates, which is separate from the mortgage market but often related.
"Look at it carefully," Patterson said. "Just because you can refinance doesn't necessarily mean that you should right now."
Patterson said homeowners should get multiple quotes and calculate how long it will take to break even.
"Housing has become the largest line item in a household budget," Patterson said, "so anything that we can do to bring the cost of that down for people is a welcome benefit."
In her case, Nelson estimates refinancing will save several hundred dollars a month, which would make a big difference.
"What world are we living in?" she said. "It's so expensive."
