At Built Different, we’re always laser-focused on how shifts in mortgage rates shake out in the real world. And
late June brought a welcome jolt: after holding near 6.79%, 30-year fixed mortgage rates dipped to 6.77%-the
lowest in three months-which sparked a strong rush of buyer activity.
– Mortgage applications surged 9.4% in one week-a sharp bump after weeks of sluggish demand.
– Purchase loan apps rose 9%, compared to the week prior, and are now 25% higher than last year’s pace.
– Refinancing jumped 56% year-over-year-a direct result of homeowners finally seeing breathing room in rates.
2. Affordability is king
3. Watch that follow-through
Builders: Get agile with pricing and product mix-especially as buyers tighten budgets.
Agents: Educate clients on rate fluctuations and lock-in timing-those few basis points can save thousands.
Buyers: Stay active. Even if you don’t pull the trigger immediately, understanding when rates dip keeps you ready to move fast. Bottom Line: This isn’t just good news-it’s a signal. A small rate thaw can unlock pent-up demand, and in Montana’s evolving market, that could mean renewed activity, more leverage for buyers, and smart pivots for sellers and builders
What Just Happened?
– Mortgage applications surged 9.4% in one week-a sharp bump after weeks of sluggish demand.
– Purchase loan apps rose 9%, compared to the week prior, and are now 25% higher than last year’s pace.
– Refinancing jumped 56% year-over-year-a direct result of homeowners finally seeing breathing room in rates.
Why This Matters
Even a tiny rate drop-just 0.02 percentage points-can be the green light buyers need. That reflects a hard truth: rate psychology matters. Buyers track every basis point, and tight affordability means even minimal movement can influence massive swaths of demand.But… It’s Not Just About Rates
According to the MBA’s Joel Kan, more buyers are jumping in because of softer home-price growth and expanding inventory. The average loan size dropped to $432,600, the lowest since January 2025. That’s a telltale sign that some buyers are chasing affordability, not flash. Still, the story’s not all rosy. Pending-sale volumes haven’t mirrored the mortgage-app surge yet-cancellations and buyer hesitation remain high.Built Different Takeaways:
1. Micro-rate drops = macro-impact2. Affordability is king
3. Watch that follow-through
What We’re Doing:-
Builders: Get agile with pricing and product mix-especially as buyers tighten budgets.
Agents: Educate clients on rate fluctuations and lock-in timing-those few basis points can save thousands.
Buyers: Stay active. Even if you don’t pull the trigger immediately, understanding when rates dip keeps you ready to move fast. Bottom Line: This isn’t just good news-it’s a signal. A small rate thaw can unlock pent-up demand, and in Montana’s evolving market, that could mean renewed activity, more leverage for buyers, and smart pivots for sellers and builders
