Purchase Applications Rise, Refis Slide: Rancho Cordova’s Mortgage Market Update

Published on May 26, 2025

Mortgage rates can sometimes feel like watching your favorite team in overtime—just when you think things are stabilizing, another twist turns everything upside down. Lately, we've seen some interesting developments, with home purchase applications showing resilience even as refinancing activity faces new challenges. As Rancho Cordova and Greater Sacramento residents watch these shifts, it’s important to stay informed on what this means for your mortgage options.

Mortgage Rates Reach Highs, Refinancing Activity Dips

The mortgage world has seen some notable rate increases recently. According to the Mortgage Bankers Association (MBA), the average 30-year fixed-rate mortgage jumped to 6.98%, marking its highest point since January. This climb has primarily been driven by higher Treasury yields and persistent market volatility. Joel Kan, MBA’s Vice President and Deputy Chief Economist, mentioned, "Mortgage rates reached their highest level since January, following higher Treasury yields."

For Rancho Cordova homeowners eyeing refinancing, higher rates mean recalculating options carefully. The immediate impact is visible in refinance activity dropping about 7% week-over-week nationwide. But let's put that in perspective—though refinance applications are experiencing short-term drops, they're still up significantly compared to last year.

Refinancing: A Game of Timing

Refinancing your home can be like waiting for the right wave when surfing—it’s all about timing. Recent rate hikes have understandably led to hesitation among homeowners across Rancho Cordova, Sacramento, and Lincoln, who might be considering cash-out refinancing, rate-and-term refinancing, or even shortening their mortgage period.

But here's the silver lining: despite recent dips, refinance volumes remain significantly ahead compared to this time last year. If rates begin stabilizing, there could be a fresh opportunity for homeowners to lock in better terms soon. Keeping a close eye on the market now is key—staying informed is half the battle.

Purchase Applications: Defying the Odds

While refinancing seems tied to market volatility, home purchasing continues to buck the trend. Nationally, purchase applications increased by 3% in the past week and remain a whopping 18% higher compared to last year. What’s driving this continued strength?

Increased housing inventory across the Greater Sacramento area, combined with potential buyers who've been waiting on the sidelines, has significantly contributed to maintaining strong purchase application volumes. Rancho Cordova, specifically, has seen sustained interest due to new developments, attractive community amenities, and proximity to Sacramento's urban core.

Inventory Rising: A Golden Opportunity for Rancho Cordova Buyers

Greater inventory means better opportunities for buyers. Rancho Cordova and the surrounding communities have experienced steady housing market expansion. Whether you're a first-time buyer exploring FHA or VA loans or considering a jumbo loan for luxury homes, these recent market dynamics mean more choices and possibly more negotiating power.

The Rancho Cordova real estate market has consistently been attractive due to quality schools, ample recreation opportunities, and easy access to major employment hubs. The resilience of the purchase market reinforces Rancho Cordova’s position as a highly desirable area in California.

Current Mortgage Rate Snapshot:

Here’s how the mortgage rate landscape currently stands, according to MBA data:

• 30-Year Fixed: 6.98% (+0.06) | Points: 0.67 (−0.02)

• Jumbo 30-Year: 6.93% (−0.01) | Points: 0.69 (−0.03)

• FHA 30-Year: 6.66% (+0.06) | Points: 0.95 (−0.01)

• 15-Year Fixed: 6.23% (+0.02) | Points: 0.67 (−0.05)

• 5/1 ARM: 6.22% (+0.06) | Points: 0.46 (+0.10)

Adjustable-rate mortgages (ARMs) saw a modest uptick in usage as borrowers sought lower initial rates amidst rising fixed-rate options. With an ARM share now at 7.5%, this indicates a growing willingness among borrowers to explore alternatives in an uncertain rate environment.

Rancho Cordova's Homeowners and Buyers: What's Next?

As we move forward, watching the fluctuations in mortgage rates will remain crucial. Local buyers and homeowners need strategies to weather volatility—whether that means refinancing at the right moment or securing a competitive rate for your first home. At Pacific National Lending, our Rancho Cordova mortgage specialists closely track these movements to provide you timely, tailored guidance.

While refinance rates remain sensitive to short-term spikes, those prepared to act swiftly during brief periods of rate stability can still benefit significantly. Additionally, strong local inventory continues to make purchasing an attractive option for those who've been waiting for the right moment.

Personalized Mortgage Guidance Matters

Having trusted, local mortgage experts in your corner matters now more than ever. Whether you’re a first-time homebuyer exploring low down payment options, seeking FHA or VA financing, or considering refinancing your home loan, we at Pacific National Lending are dedicated to providing transparent, timely, and personalized support.

Our Rancho Cordova mortgage brokers can offer customized advice to navigate current market conditions. This can include evaluating adjustable-rate options, jumbo loans, reverse mortgages for retirees, or streamlined refinancing products. Your unique financial scenario always guides our recommendations, ensuring you make informed and empowered decisions.

Ready to Navigate the Mortgage Market with Confidence?

Navigating today’s mortgage landscape might seem complex, but it doesn’t have to be daunting. With the right insights and expert guidance, Rancho Cordova homeowners and homebuyers can turn market volatility into opportunities.

At Pacific National Lending, our team is passionate about simplifying your mortgage experience. Whether you're considering refinancing to tap into your equity or finally buying your dream home, let us help you make it happen.

Reach out to our Rancho Cordova mortgage experts at (877) 536-3076, or visit us at our Gold Meadow Way office in Gold River. Let's discuss your mortgage options today and help you seize the right opportunities at the right time!

When it comes to your mortgage decisions, don’t just follow the market—stay ahead of it. Because at Pacific National Lending, your success is our business.