Fed Cuts Rates, Mortgage Applications Jump 30% Overnight

On The Market

BiggerPockets

Investing, News, Education, Business

4.8 • 858 Ratings

🗓️ 23 September 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Fed rate drop, refinance rush, and a land price reset: what does it mean for the housing market now. Henry Washington, Kathy, and James explain why refinance applications jumped roughly 30 percent after 30-year mortgage rates slipped near 6.39 percent, how today’s ARMs actually work, and why locking a refi now can beat waiting for future interest rates to fall. They outline a practical housing market prediction and forecast, expecting more transactions rather than a surge in home prices or housing prices, plus timing tips for listing into the spring when buyer activity historically rises. You will also get a reality check on the “great wealth transfer” and reverse mortgages, along with a land strategy playbook for a potential price decline, from targeting big-lot houses and infill splits to using seller financing to create equity and cash flow. Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finder Henry's BiggerPockets Profile James' BiggerPockets Profile Kathy's BiggerPockets Profile Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/on-the-market-358 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The real estate market never stops moving, and this week's data really matters for homeowners and investors alike.
0:11.2	What's going on, everybody? I am Henry Washington, and I'm sitting in for Dave Meyer this week.
0:16.2	I am also joined by Kathy Fetke and James Dainard. We are unpacking all the latest headlines, including
0:22.4	the most recent rate cut data, and breaking down what they mean for prices, supply, and your
0:28.3	investment portfolio. This is on the market. Let's get into it. We'll start with the article
0:34.2	that I brought because it's talking about the thing that everybody's talking
0:38.5	about this week.
0:39.7	And everybody's been waiting for.
0:41.0	Which everybody's been waiting for.
0:42.9	And my article is from MPA, the Mortgage Professionals of America.
0:47.1	And it talks about how the 30-year fixed rate mortgage rate has recently dropped to 6.39%,
0:52.9	which is obviously the lowest since October 24.
0:55.9	But in reaction to that drop, mortgage applications have surged up 30% week over week, which is
1:03.0	seasonally adjusted because we're going into the slow season. But without adjustment,
1:06.6	it's up 43%. But 60% of those applications were for refinance applications. So people who probably
1:16.1	bought last year or the year before sitting around 8% if you're a homeowner and 9% plus if you're
1:23.9	an investor are looking to refinance these properties, taking advantage of the
1:29.0	burden of the hand that they have now of a lower interest rate. Purchase applications, it says,
1:34.6	were also up, but just modestly, about 3% week over week, and up 20% versus last year. And of those
1:41.9	refinanced applications, a good percentage of them around 12.9 or 13%
1:47.4	were for adjustable rate mortgages, meaning that people were signing up for arm loans, but they're
1:54.2	not the same arm loans from 2008. The arm loans have changed quite a bit since then. So the
	...

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