Fed on Pause. What That Means From a Lending Perspective
With the Federal Reserve holding rates steady, many buyers and homeowners are wondering what this means for financing decisions right now.
From a lending standpoint, this is shaping up to be a more stable window — and stability can be a powerful opportunity.
Where Rates Stand
The 30-year fixed has been hovering in the low-6% range (around 6%–6.11%), down from the 7%+ levels we saw earlier last year. That 1% drop makes a meaningful difference, especially in the luxury space. On a $3M mortgage, that shift alone can equate to roughly $24,000 per year in payment savings.
We’re also seeing a clear response to the improved rate environment. Purchase applications are up about 4% year over year, and refinance activity has surged nearly 100%, now making up roughly half of all applications.
While rates are always volatile around job, inflation and other economic reports they have held much steadier than expected.
What This Means for Borrowers
In higher price points, lending strategy matters just as much as timing. A more stable rate environment gives buyers and homeowners the chance to be thoughtful and proactive — whether that means purchasing, refinancing, or simply preparing.
The “Go Button” From a Financing Perspective:
- Start with a real pre-approval to understand purchasing power and payment comfort.
- Explore all loan options, including jumbo structures, low down payment to offset using stock accounts and specialized programs that can create flexibility.
- Get an accurate read on your credit profile. A lender soft pull often provides a clearer picture than consumer apps.
- Consider temporary or permanent rate buydowns. In certain situations, sellers can help reduce the interest rate to improve monthly cash flow.
- Get fully underwritten upfront. This strengthens your position, shortens timelines, and creates confidence when it’s time to move forward.
Even in a pause, preparation is powerful. When rates eventually move again, those who are already positioned from a lending standpoint tend to have the most flexibility and control.
Written by Samantha Scherr | VP of Mortgage Lending at Origin Point
NMLS# 1202073
