CWG Insight Series: Mortgage Rates Come Down, Refinances Surge

According to data from FreddieMac, the average 30-year mortgage hit its peak rate of 7.79% in October 2023. One year later, things are finally starting to improve. Last month, the Fed made their first rate reduction since they started raising rates in March of 2022. As of the 9/26 data, the average rate on a 30-year mortgage was 6.08%. On a $500,000 mortgage, that equates to $712.50 of first year monthly payment savings.
 
 With the decrease in rates, the mortgage industry is seeing a surge in refinance applications. While the current savings are enticing, the Fed is likely to continue lowering rates, meaning even more attractive mortgage rates are on the horizon. If the average rate were to reach 5.00%, the monthly savings from the current rate would be another $450.  
 
 If you have a mortgage with a rate higher than 5.00%, please get in contact with your Crown Personal CFO so we can begin the conversation on when to apply for a refinance. It’s likely that we’ll wait until early 2025, but we can begin getting things ready for that time.