Following the Fed’s rate cut, mortgage and refinancing applications are up week-over-week. Compared to last week, mortgage applications have increased by 29.7% and the Mortgage Bankers Association’s Refinance Index reports a 58% increase. With mortgage rates at their lowest since last October, refinancing applications have jumped to take advantage of the lower rates.
In anticipation of the rate cut leading up to the Federal Reserve meeting, homeowners were already jumping to refinance. Through this influx of newly refinanced mortgages, contractors can expect increased remodeling activity to begin shortly. With the home renovation market continuing strong despite economic uncertainty, the rate cut will only see more refinance applications moving forward.
Even among those picking up purchase applications, remodeling older homes is a given especially in move-up and luxury sectors. Contractors should be aware of the impacts of the rate cut and how its small, yet significant effects trickle in.
