Mortgage apps dropped again, even with lower rates last week

Mortgage applications pulled back again last week, according to the Mortgage Bankers Association, even though rates had dropped modestly from their May highs. That tells you something important: a quarter-point move down isn't lighting a fire under buyer demand. People are still cautious, still waiting, still wondering if something better is coming. Refinance volume stayed flat. Purchase apps showed a little more resilience, but nothing that suggests a wave of new buyers is rushing in.

For your sellers: inventory is building (new home sales cooled in April, and supply is up across the board), but buyers aren't flooding back yet. That means pricing has to be sharp and realistic to stand out. For your buyers: this is actually a decent window. Rates are elevated but stable, competition is lighter than it was six months ago, and there's more to choose from. The clients who move now are the ones getting deals done, not the ones waiting for a headline that says rates dropped a full point overnight.

The Fed meets in 9 days, and that could shake things up. If your buyer is ready to lock, I'd rather see them do it sooner than gamble on a better number next week. If you want to talk through a client's scenario or timing, I'm at (949) 350-8005.