CONSUMER

With lower mortgage rates, is now the time to refinance your home?

Aug 9, 2024, 5:01 PM | Updated: 7:47 pm

SALT LAKE CITY — Falling mortgage rates have led to a surge of interest in refinancing.

Refinance applications are at their “highest level in two years,” the Mortgage Bankers Association said this week, as rates have dropped to their lowest levels in more than a year.

According to Mortgage News Daily, the national average for mortgage rates hovered around 6.5% as of Friday afternoon.

Lenders in Utah are noticing an uptick in refinancing interest.

“Refinance activity’s really increased substantially in the last little bit,” said Josh Kramer, who sits on the board of directors for the Utah Association of Mortgage Professionals. “There is a lot of people right now that would absolutely benefit from refinancing.”

Utah’s median home price rises to $500k despite high mortgage rates

Leland Schuyler is one of them. In June 2023, he purchased a house in Payson at a rate of 7.25%.

“We knew going into it that we would be [refinancing] as soon as possible,” Schuyler told KSL TV, “and since the beginning of the week, it’s looking like now might be a good time to do that.”

Schuyler said he plans to pull the trigger soon, and based on current rates, he expects it will make a big difference in his budget.

“That would end up saving us several hundred dollars a month,” he said.

‘I got frustrated and gave up’: High mortgage rates keep some Utah homebuyers on the sidelines

However, just because mortgage rates have fallen doesn’t automatically make it a no-brainer to refinance. Kramer said for older loans with a lower balance, it might not be very helpful.

“But if I had a loan from last October and I could save 1%,” Kramer said, “I would jump on that all day.”

Another thing to consider when refinancing is the amount of upfront costs and how long it would take to break even.

But for many people right now, Kramer said, refinancing is “absolutely worth looking into.”

KSL 5 TV Live

Consumer

Seth Hiatt said his tabletop game company is being hit with new tariffs on his products that are ma...

Mike Anderson

Tariffs hit Utah businesses that import from China

Seth Hiatt said his tabletop game company is being hit with new tariffs on his products that are manufactured in China – a cost he'll have to pass on to consumers.

4 days ago

RubySnap bakery in downtown Salt Lake City is struggling with the high cost of eggs. Pictured Wedne...

Debbie Worthen

Utah bakery feeling the pain of soaring egg prices

A Utah bakery is feeling the pain of soaring egg prices as they work to bake "joy in a cookie form."

4 days ago

Rehn says despite the her washer’s fifth breakdown, her extended warranty company will not pay ou...

Matt Gephardt and Sloan Schrage, KSL TV

Get Gephardt helps Washington City woman who says her warranty won’t pay out for her unrepairable washer

When a Washington City woman's extended warranty refused to cover the cost to replace her broken-down washer, she decided to Get Gephardt.

4 days ago

FILE – U.S. agriculture could be impacted heavily during a trade war, as it did in 2018-19. (KSL ...

Mike Anderson

Economist: Effects of 2018-19 trade war still linger, shows what to expect from another trade war with China

An economist at Utah State University says tariffs tend to hurt the consumer, and rarely achieve their objectives without doing significant damage.

6 days ago

Super Bowl-Snack Prices...

Susan Montoya Bryan, Associated Press

Winging it for the Super Bowl? Broccoli might be a cheaper party snack this year

The cost of hosting a Super Bowl party is expected to barely budge this year, with an average increase of about 10 cents from the previous year.

8 days ago

People buy groceries at a Walmart Superstore in Secaucus, New Jersey, July 11, 2024....

Paul Wiseman, AP Economics Writer

What are tariffs and how do they work?

Tariffs are in the news at the moment. But what are they?

8 days ago

Sponsored Articles

holiday gift basket with blue tissue paper and gingerbread cookies...

Kneaders Bakery & Cafe

Holiday hacks for a stress-free season

Get more out of your time with family and loved ones over the holidays by following these tips for a stress-free season.

2 computer techs in a computer shop holding up a computer server with the "hang loose" sign...

PC Laptops

A comprehensive guide to choosing the right computer

With these tips, choosing the right computer that fits your needs and your budget will be easier than ever.

crowds of people in a German style Christmas market...

This Is The Place Heritage Park

Celebrate Christkindlmarket at This Is The Place Heritage Park!

The Christkindlmarket is an annual holiday celebration influenced by German traditions and generous giving.

Image of pretty woman walking in snowy mountains. Portrait of female wearing warm winter earmuff, r...

Lighting Design

Brighten your mood this winter with these lighting tricks

Read our lighting tips on how to brighten your mood in the winter if you are experiencing seasonal affective disorder.

A kitchen with a washer and dryer and a refrigerator...

Appliance Man

Appliance Man: a trusted name in Utah’s home appliance industry

Despite many recent closures of local appliance stores, Appliance Man remains Utah's trusted home appliance business and is here to stay.

abstract vector digital social network technology background...

Les Olson

Protecting yourself against social engineering attacks

Learn more about the common types of social engineering to protect your online or offline assets from an attack.

With lower mortgage rates, is now the time to refinance your home?