Unlocking Opportunities: Lower Mortgage Rejection Rates Point to a Brighter Real Estate Horizon

Lisa Mailhot  |  November 21, 2023


Unlocking Opportunities: Lower Mortgage Rejection Rates Point to a Brighter Real Estate Horizon


Are you thinking about buying or selling a home? The latest data from the Federal Reserve Bank of New York suggests that now might be the perfect time to make your move. Mortgage rejection rates are down year-over-year, and this is great news for both buyers and sellers in the real estate market.

Improving Creditworthiness

One of the key reasons behind the decline in rejection rates is the higher creditworthiness among consumers applying for new mortgages in 2023. This means that a smaller group of mortgage applicants is meeting the criteria for approval, which is excellent news if you're looking to secure a mortgage for your dream home.

Application Rates

Not only are rejection rates down, but application rates have also seen notable changes over the past year. The average application rate for 2023 is 41.2%, which is lower than both the 2022 level of 44.8% and the pre-pandemic 2019 level of 45.8%. This suggests that while there are fewer applications, those who do apply have a better chance of success.


Mortgage Loan Applications

Mortgage loan application rates have also experienced a significant shift. In October, they declined to 4.3% from 6.7% compared to one year earlier. The 2023 average rate of 5.7% is 1.5 percentage points lower than in 2022 and 2.2 percentage points below the 2019 average. This trend indicates a more favorable environment for potential homebuyers.

Refinancing Opportunities

If you're a homeowner considering refinancing, there's good news for you as well. Application rates for mortgage refinancing declined further during 2023, reaching 3.3% in October from 8.9% in the previous year. While these levels are below pre-pandemic levels, they still represent an attractive opportunity for those looking to refinance their mortgages.

Looking Ahead

The New York Fed's analysis also provides insights into future trends. The average likelihood of applying for a mortgage in the next 12 months decreased slightly to 6.7% from 7.3% in 2022. Meanwhile, the average likelihood of applying for a mortgage refinance reached a new low of 3.5% in October. These numbers suggest that the coming months may still offer favorable conditions for prospective homebuyers and refinancers.


The declining mortgage rejection rates indicate a more favorable real estate landscape. Whether you're a buyer looking to secure a mortgage or a homeowner considering refinancing, these trends could work in your favor. Stay tuned to our blog for more insights into the ever-evolving real estate market.



Recent Blog Posts

Stay up to date on the latest real estate trends.


Unlocking Cost-Free Real Estate Marketing Strategies for Maximum Impact

Lisa Mailhot  |  May 17, 2024

Explore five innovative and cost-free real estate marketing strategies that leverage creativity and strategic thinking to enhance your brand's visibility. From network… Read more


The Rise of Tiny Homes as a Game-Changer in Modern Housing

Lisa Mailhot  |  May 16, 2024

Tiny homes are gaining popularity as affordable and eco-friendly housing options, but they come with pros and cons. Explore the tiny house movement and whether it's th… Read more


Practical Steps to Achieve Financial Prosperity

Lisa Mailhot  |  May 14, 2024

Discover effective strategies to build wealth and achieve financial freedom in our latest blog. Learn about setting financial goals, managing debt, and the importance … Read more


Inland Empire Warehouse Market Faces Oversupply, Rents Under Pressure

Lisa Mailhot  |  May 14, 2024

Explore the current challenges and opportunities in the Inland Empire warehouse market, where an oversupply bubble causing downward pressure on rents. Benefit from ind… Read more


Q1 2024 Home Price Surge: Analyzing Metro Market Trends 

Lisa Mailhot  |  May 10, 2024

Discover the latest trends in the U.S. housing market with over 90% of metro areas posting price gains in Q1 2024. Learn which regions are seeing the biggest increases… Read more


The Power of Diversity: Enhancing Real Estate Growth and Success

Lisa Mailhot  |  May 10, 2024

Discover how diversity can drive innovation, strengthen client relationships, boost team morale, and improve brand reputation in the real estate industry. Embrace the … Read more


Unraveling the Top 10 Deal Breakers in Commercial Real Estate

Lisa Mailhot  |  May 9, 2024

Navigating the complex world of commercial real estate can be a minefield, with many possible challenges that can disrupt even the most promising deals. From financing… Read more


How MLSs Are Taking the Reins in Enforcing NAR Settlement Changes

Lisa Mailhot  |  May 8, 2024

Discover the pivotal role of Multiple Listing Services (MLSs) in enforcing the latest commission rules set by the National Association of Realtors (NAR). Learn how the… Read more


Homeownership Dreams Fading for Renters in Orange County

Lisa Mailhot  |  May 7, 2024

The latest Federal Reserve Bank of New York survey has revealed a stark reality for renters in Orange County and nationwide – the prospect of owning a home is becoming… Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.