Mortgage Applications Today: Home Loans Surge as Borrowers Take Advantage of Lower Rates

The demand to finance a home surged as mortgage applications increased 3.1% for the week ending Aug. 1, according to the Mortgage Bankers Association. The increase comes after applications decreased 3.8% the week prior.

In addition, mortgage interest rates remained fairly steady at 6.72% for a 30-year fixed mortgage, for the week ending July 31, according to Freddie Mac.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3% compared with the previous week.

The refinance index increased 5% from the previous week and was 18% higher than the same week one year ago.

The seasonally adjusted purchase index increased 2% from one week earlier. The unadjusted purchase index increased 1% compared with the previous week and was 18% higher than the same week one year ago.

Homeowners who decided to refinance increased to 41.5% of total applications from 40.7% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.5% of total applications.

There was a slight decrease in Federal Housing Administration loan applications to 18.5% from 18.8% the week prior.

Veterans Affairs loan applications increased to 13.3% from 12.2% the week prior. USDA loan applications also decreased, though slightly, to 0.5% from 0.6% the week prior.

"Mortgage rates moved lower last week, following declining Treasury yields as economic data releases signaled a weakening U.S. economy. As a result, the 30-year fixed rate decreased for the third straight week to 6.77 percent," says Joel Kan, MBA’s vice president and deputy chief economist.

"Refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks. The refinance share increased to almost 42 percent, its highest level since April."

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.77% from 6.83%, with points decreasing to 0.59 from 0.60 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.65% from 6.74%, with points increasing to 0.59 from 0.51 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

For 30-year fixed mortgages backed by the FHA, the average contract interest rate decreased to 6.47% from 6.56% , with points decreasing to 0.81 from 0.83 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.03% from 6.12%, with points increasing to 0.66 from 0.64 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

For 5/1 ARMs, the average contract interest rate decreased to 6.06% from 6.22%, with points decreasing to 0.49 from 0.51 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

"Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week," says Kan. "Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory of homes has been supporting homebuying, but on the other hand recent weakness in the economic environment has deterred some prospective homebuyers."

Mortgage rates calculated

Mortgage rates are calculated by various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.

Read more at Realtor.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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First-Time Buyers Flock to Older Homes as Starter Homes Age Out

There was once a time when a homebuyer searching for their new house focused on new construction, often on the outskirts of town, in new developments—but those days are over.

The skyrocketing price of homeownership means that old and small is the new starter home, according to a new report from Cotality.

The 'new' starter home is old

"The starter home has effectively aged out," says the report's author, Cotality economist Thom Malone. "First-time buyers are priced out by high mortgage rates or lack of supply."

Nor are new builds generally geared toward the first-time buyer, unless that buyer happens to have a lot of money.

"Land costs, building material prices, and a persistent lack of housing supply has transformed new builds into high-end housing—even in more affordable regions of the U.S.," he says.

Additionally, new developments often require a cash deposit of up to 20% of the full price. Given today's prices, that could be a bundle—more than a younger person can afford.

While sales of older homes have always outstripped newer ones, given that there are so many more of them, sales of existing homes are down 2% year over year, while new-home sales are down 3.43%, says the Cotality report.

Roughly 70% of existing homes have less than the average 2,000 square feet of space that is common in new construction, indicating that many buyers are forgoing extra space in favor of a lower price tag, according to the report. (For this analysis, a starter home is defined as having a maximum of 1,500 square feet.)

Even smaller new homes can still be pricey—Cotality data shows the median price of a newly built home in April 2025 that's less than 1,500 square feet was $320,000.

While this is less than the June median national price tag of $440,950, according to Realtor.com®, it is pricier than what was available before the COVID-19 pandemic. In April 2019, the median price tag was $310,000.

Real estate agents agree that more clients are asking for older homes. While affordability is key, there are other reasons as well.

"I have seen buyers opt for older homes in more established areas versus new construction because they don’t want to live in a cookie-cutter neighborhood where all of the homes look the same, there are no trees or mature landscaping and certainly deal with all of the hassle that comes with living amongst new construction being built all around them," Cara Ameer, a real estate agent with Coldwell Banker who is licensed in Florida and California, tells Realtor.com.

Lot sizes tend to be larger with older homes, as well, she notes. "Builders squeeze everything on 40- to 60-foot-wide lots, and you pay a premium to have some sort of view versus backing up to other homes."

"I'm seeing a noticeable shift toward older homes as today’s version of the starter home," agent Libby McKinney-Tristchler, of Team AFA/William Raveis in Southport, CT, tells Realtor.com. "For many dual-income households, the idea of a smaller, more manageable space is a lifestyle choice, too. They’re not interested in spending weekends maintaining big houses or oversized properties."

Of course, in a pricey area like Southport, with a median house price tag of $869,000, clients are looking for something more affordable.

"Buyers are telling me they’re looking for something at a price point that feels within reach, and older homes offer that opportunity," she says.

Andrea Kremer of Rooftop Realty Group represented a small (1,080-square-foot), one-owner, 70-year-old house on Edden Lane in Syracuse, NY. It was on the market only a week before finding a buyer.

"It's a simple supply-and-demand issue here," she says. "We have a lot of buyers, and we don't have a lot of inventory. As long as the house is priced correctly in a decent area and is something someone can make their own or is move-in ready to some extent, they are flying off the shelves if they are under $300,000."

The little red four-bedroom fixer-upper had a bidding war going and was sold at almost $50,000 over the list price of $129,900.

"It was probably the only home in this area for that price," Kremer says.

Re/Max agent Bruce Ailion says the trend toward older and smaller is one he is seeing in Atlanta as well.

"A decade ago, these homes would have been challenging to sell," he tells Realtor.com. But these days, 1950s-built homes that are a mere 750 to 1,100 square feet are being snapped up, either by buyers in their 20s and 30s—or their boomer/Gen X parents.

"Going smaller and older is one of the few ways to get an affordable detached home," he says.

And then there's property taxes.

"Most counties base the tax base of a home on the purchase price. A fixer-upper is going to have a lower tax base," says Jeff Lichtenstein, CEO of Echo Fine Properties in Jupiter, FL.

Quality over quantity (of square feet)

Jonathan Klemm, CEO of general contracting company Quality Builders, says he saw an opportunity when he closed on a small three-bedroom home built in 1963 for $311,000 ($173 per square foot) in Lyons, a Chicago suburb. The median price in the neighborhood is $193 per square foot.

With his background, Klemm believed he could put the work in, save money, and put his style stamp on the home. With two young daughters, he thought 1,800 square feet was as small as he could go—and it was all he and his family needed.

"Many people are more willing to put in the work and do minor cosmetic work and/or live with some of the older styles and upgrade over time," he tells Realtor.com. "I kind of wanted something I knew we could renovate. From the beginning, I was heavily leaning toward an older home in need of cosmetic touch-ups."

Many homebuyers opting for smaller, older homes believe that, unlike newer homes, they are built to last.

"I'll be the first to say it since no one in my industry wants to say it: New homes are crap," Los Angeles real estate investor Jameson Tyler Drew tells Realtor.com. He also sells in his home state of Indiana.

He says that while new construction is a "solid chunk" of his sales, those homes tend to be plagued with issues.

"These homes—and I'm not throwing any particular home builder under the bus because it's an industry-wide problem—almost immediately have problems upon completion," he says.

"Missing joists, cracked window welds, HVAC installed wrong, the list goes on. To make matters worse, the bigger home builders will fight you tooth and nail before they fix anything major they are responsible for."

"I've seen new houses that somehow manage to have uneven foundations. I've seen every kind of screwup that comes with home builders not coordinating correctly and using the cheapest products they can find."

He favors historic homes built with durable materials that are hard to find in new construction.

"Floors and joists are often made of American chestnut, a tree that's nearly extinct these days," he says. "They made for extremely durable, beautiful floors. Even if you don't opt for the Victorian mansion, the cookie-cutter houses built in the 1930s-1960s still offer thicker walls and better materials than you'd find today. All for a fraction of the cost."

His advice? Go old.

"I will always advocate for my client to buy an older home over new construction every day of the week," he says.

Read more at Realtor.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Pattern Drenching Is the Latest Maximalist Approach to Home Decor—Here’s How to Embrace It Without Feeling Overwhelmed

In today’s minimalist design-filled world—where neutral walls, white marble, cloud-cream couches, and abstract art in muted tones dominate—there’s a growing push for bolder interiors. Enter pattern drenching, the latest decor trend that brings color, contrast, and personality back into our living spaces.

Designers have begun moving away from the quiet luxury aesthetic that has dominated interiors in recent years, and instead, they’re embracing a touch of maximalism—specifically through pattern drenching. We spoke with an interior designer about how to bring the trend into your own home, along with key tips to keep in mind when mixing prints and patterns.

What Is Pattern Drenching?

Pattern drenching is the layering of different patterns and prints throughout a space—even ones that may not seem cohesive at first glance. This can be done through wallpaper, rugs, art, textiles, and furniture. Steven Rodel, creative director of Guy Goodfellow, says the technique takes a bit of confidence at first, but when done right, it creates a rich, eclectic look that’s completely your own. “It’s about creating a perfect orchestra,” Rodel says. “You want to mix things up so they aren’t competing, but still achieve a sense of balance.”

How to Pattern Drench at Home

Start by choosing a pattern you naturally gravitate toward, then build from there. Rodel recommends beginning with moveable, low-commitment items like throw blankets, cushions, or area rugs.

When selecting a room to experiment in, Rodel suggests starting small. Try a guest room, stairwell, or attic space before tackling larger, more central areas like the living room.

Designer-Approved Tips for Pattern Drenching

Use patterns that speak the same language. If you’re mixing florals, repeat one print somewhere else in the room to create cohesion. Or, try combining patterns in a shared color palette to establish a clear tone.

Pay attention to contrast. Rodel advises against pairing bold prints with bright white backgrounds, which can feel harsh. Instead, opt for deeper or softer background tones to create a more inviting and relaxed space.

Tell a story through the designs. “Pattern drenching is ultimately about taking joy in the mix,” Rodel says. “The goal is a space that’s layered, interesting, and full of comfortable complexity.”

Read more at Real Simple

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Two Denver Suburbs Rank Among Top Places to Buy First Home

Buying a house in Colorado isn't so bad, after all, according to a new nationwide ranking that lists two metro Denver towns among the best places to buy your first home.

Earlier this month, personal finance company WalletHub ranked the 300 best cities in the United States for first-time home-buyers. The study considered home prices, cost of living, home inventory and turnover, local mortgage lenders, crime rates and the quality of schools, among other metrics, to rank the top 300. Each city was then ranked in four categories: overall score, affordability, local real estate market and quality of life.

Very few cities in the overall top 25 were ranked in the top 100 for affordability, but many ranked very high in quality of life and real estate market. Palm Bay, Florida, came in at number one, despite being ranked 118th in affordability. However, the small coastal town placed second and third in the real estate market and quality of life, respectively, which helped push Palm Bay's overall score to 67.24

Colorado Springs, Longmont, and Centennial all made the top fifty thanks to decent real estate market rankings, while Denver came in at 148, ranking 263 out of 300 in quality of life and 155th in affordability, with its only saving grace being a 24th-best local real estate market.

Aurora, Fort Collins, Greeley and Westminster all landed on the top half list, as well, but only two places in Colorado cracked the top 25: Arvada and Thornton.

Thornton: Relatively Affordable Place to Settle

With a population of more than 140,000 people, Thornton is the sixth-most populated Colorado city and one of the larger Denver-area jurisdictions, stretching north of Interstate 70. Thornton is surrounded by cities like Northglenn, Commerce City, Westminster and Brighton, and sits in both Adams and Weld counties. It's mostly residential and has the large Thorncreek Golf Course and Denver Premium Outlets strip mall to complement more than 1,200 acres of parks and open space, according to the Colorado Tourism Office.

According to WalletHub, Thornton stands out as a good place to buy a first home because of its affordability and quality of life. That was good enough for sixteenth overall for first-time home buying, and a total score of 60.55

Thornton ranked 23rd on the list for quality life, the highest-ranked Colorado city in that category. According to WalletHub, the quality of life ranking is based on weather, school systems, driver-friendliness, job market, home energy costs and the rate of property crimes and violent crimes.

However, Thornton ranked 117th in affordability, which is based largely on the median home price but also the cost of living, real estate taxes, the cost of homeowner's insurance and the average cost per square foot of a home.

No city from the Denver area ranked in the top 100 for affordability, but Pueblo ranked 77th in the category. Colorado Springs ranked 104th while Centennial ranked 108th, making them the only Colorado cities to beat Thornton in affordability.

Arvada: Solid Real Estate Between Mountains and the City

Just northwest of Denver in Jefferson County is Arvada, Colorado's seventh-most populated city with more than 120,000 residents, immediately north of Interstate 70. Like Thornton, Arvada is part of the same cluster of jurisdictions in the northern metro, but it's further east, neighboring Wheat Ridge, Westminster and the Denver Highlands. The city is known for Olde Town Arvada, a lively downtown center with a blend of historic and modern style, and it stretches into the mountains, towards pristine open space areas like Coal Creek Canyon.

WalletHub ranked Arvada 23rd overall with a score of 59.62. The city's real estate market ranked 29th, which is based on factors like the price of homes compared to the average rent, the median number of days homes are on the market and the number of active home listings per capita.

Although Arvada's real estate market ranked higher than Thornton's, it ranked lower than three Colorado cities in the category: Aurora (twenty), Denver (24) and Longmont (27). But Arvada had better-rated life and affordability rankings. (Denver and Aurora had miserable rankings in those other categories.)

Arvada came in at 128th in affordability, eleven places back from Thornton. That also put Arvada two places back from its neighbor, Westminster, which ranked 126th in affordability.

Arvada ranked fifth among Colorado cities for quality of life, behind30 Thornton, Fort Collins, Boulder, and Longmont.

Read more at Westword

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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What Credit Score Do You Really Need To Buy a Home?

According to Fannie Mae, 90% of buyers don’t actually know what credit score lenders are looking for, or they overestimate the minimum needed.

Let that sink in. That means most homebuyers think they need better credit than they actually do – and maybe you’re one of them. And that could make you think buying a home is out of reach for you right now, even if that’s not necessarily true. So, let’s look at what the data really says about credit scores and homebuying.

There’s No One Magic Number

There’s no universal credit score you absolutely have to have when buying a home. And that means there’s more flexibility than most people realize. Check out this graph showing the median credit scores recent buyers had among different home loan types:

Here’s what’s important to realize. The numbers vary, and there’s no one-size-fits-all threshold. And that could open doors you thought were closed for you. The best way to learn more is to talk to a trusted lender. As FICO explains:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

Why Your Score Still Matters

When you buy a home, lenders use your credit score to get a sense of how reliable you are with money. They want to see if you typically make payments on time, pay back debts, and more.

Your score can impact which loan types you may qualify for, the terms on those loans, and even your mortgage rate. And since mortgage rates are a big factor in how much house you’ll be able to afford, that may make your score feel even more important today. As Bankrate says:

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

That still doesn’t mean your credit has to be perfect. Even if your credit score isn’t as high as you’d like, you may still be able to get a home loan.

Want To Boost Your Score? Start Here

And if you talk to a lender and decide you want to improve your score (and hopefully your loan type and terms too), here are a few smart moves according to the Federal Reserve Board:

Pay Your Bills on Time: This is a big one. Lenders want to see you can reliably pay your bills on time. This includes everything from credit cards to utilities and cell phone bills. Consistent, on-time payments show you’re a responsible borrower.

Pay Down Your Debt: When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible. That makes you a lower-risk borrower in the eyes of lenders – making them more likely to approve a loan with better terms.

Review Your Credit Report: Get copies of your credit report and work to correct any errors you find. This can help improve your score.

Don’t Open New Accounts: While it might be tempting to open more credit cards to build your score, it’s best to hold off. Too many new credit applications can lead to hard inquiries on your report, which can temporarily lower your score.

Bottom Line

Your credit score doesn’t have to be perfect to qualify for a home loan. But a better score can help you get better terms on your home loan. The best way to know where you stand and your options for a mortgage is to connect with a trusted lender.​

Read more at Keeping Current Matters

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• 8 Common Plants That Can Actually Cause Damage to Your Property

• Homes Are Sitting on the Market Longer as Cautious Buyers Remain on the Sidelines

• 55-Plus Buyers Want Wellness Features And Loved Ones Nearby

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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