18% drop in refinance demand? Here's what homeowners need to know (Mortgage Rates)

Added: 2026-06-02

[00:00:00]Real estate mortgage refinance demand has just dropped 18% as mortgage rates hit their highest level since August.

[00:00:09]Mortgage rates continued to their climb last week, making it harder for the current homeowners to save on a refinance. Potential home buyers also pulled back a bit, causing total mortgage application volumes to drop 8.5% last week as compared with the previous week. according to the Mortgage Bankers Association's seasonally adjusted index. Wait till the end of this video cuz I've got something to show you that might blow your mind though if you are looking for a refinance or a purchase. Uh the average contract interest rate for the 30-year fixed mortgage rates with conforming loan balances of 832,000 or so or or less increased to 6.65%.

[00:00:52]And this is up from 6.56%.

[00:00:56]With points rising over half a point from I mean this is interesting times, right? It looks like banks are going risk on and they're going, "Hey, we're going to we're going to charge more, right? This includes the origination fee for loans with about a 20% down payment." The 30-year fixed rate has climbed 30 basis points over the past 5 weeks to its highest level since August of 2025. Now, refinance demand took the hardest hit with those applications down 18% for the week. They were still 19% higher than the same week 1 year ago.

[00:01:32]So, now think about that. You got a situation where uh interest rates are higher than a year prior, right? And the refinance is still happening. And that's because a lot of people are in trouble.

[00:01:44]And I'm going to talk about that in just a sec. Now, last year at this time, the 30-year fixed rate was was a little bit higher, but you see people now more in panic. A good quote that I saw in CNBC was there were large declines in applications across loan types.

[00:02:01]Conventional refinances were down 14% along with an 18% decrease for FHA applications and a 34% decrease for VA applications. That is what I really want to jump over here. Now, the person that this came from Joel K, which was vice president and deputy chief economist at the MBA. All right. Um, he went on to say a little bit more that overall refinance applications accounted for 38% of total applications, which was the lowest share since Jul J June of 2025.

[00:02:35]So, now that brings me to my point. VA and FHA. There are a lot of people that took these home loans out, these mortgages in the last couple of years where they bought a home at its peak price and now the price is falling. And this is where it gets very serious. A lot of people have are running with mortgages over 6 and 12%. If you are one of the people that have a mortgage after 6 12%. Take a look at the link down below. What I did is I found one of the larger mortgage companies in the country and I said, "We need to figure out a problem, a way to solve a problem for people to refinance now before their home price falls too low to where they don't qualify for the proper ratios of uh the the home value versus the mortgage amount to where they can get refinanced, restart the clock, and have some breathing room because as this market, the housing market, keeps falling in price, more people list their homes. homes and sellers capitulate and drop the price, a lot of people are not going to be able to refinance at all, even if rates go down to five, four, you know, ranges like that. So, take a look at the link down below. And I think I negotiated some special rates that you may be very interested in checking out, especially right now in the uh FHA and the VA realm where there are people that are able companies are able to refinance you uh with very little or no fees and be able to actually drop your interest rate a little bit and give you some breathing room. That's the biggest part of all of this. If you're watching mortgage rates, there's going to be some relief for you really quick. And next month, I'm able to roll out a whole uh suite of products for conventional lending as well that is just going to blow people's minds. I'm so excited about this. So, take a look at the link down below. Um there's a rate calculator that you can mess around with. It's really good and you could see if their rates will blow your mind compared to other rates. And I always suggest you go and get two, three, four, maybe even five rate quotes from companies with the same apples for apples comparison so that you can save money right now before your house price drops far enough to where you're out of those ranges that where the big banks um or even some of these uh credit unions don't want to deal with you. And those are the rates that are really good right now. All right, that being said, the Ninja is out.