Lately, I’ve noticed a shift in how homeowners are tapping into their property’s value. With mortgage rates climbing near 7% by late Q3—after the central bank nudged its rate to around 4%—many who locked in lower rates earlier are finding refinancing less practical. In fact, refinance applications dropped about 9% in just one week, while purchase requests dipped by only 1%, and overall mortgage demand slid 4%. Refis made up roughly 39% of all mortgage applications at that point. Over the three months leading into mid-Q3 2026, one industry index showed refi inquiries dropping sharply to about 2%, compared to 39% the previous year. Meanwhile, home equity products surged to 76% of inquiries.
What stands out to me as a broker working across Northern Utah is how more clients are exploring home equity lines and loans instead of refinancing. Mid-Q3 inquiry volume for equity products jumped 11% month-over-month and more than 150% compared to the previous year. With the gap between new and existing 30-year mortgages exceeding one percentage point—translating to about $333 more per month on a $400K loan—it’s easy to see why homeowners are weighing their options carefully.
Builder sentiment has also softened, with its index at the lowest since 2025, and the 10-year Treasury yield topping 5%, keeping mortgage rates on everyone’s mind. If you’re weighing whether to refinance, tap home equity, or make a move, I’m always here to help you sort through the possibilities and find the best fit for your goals.
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