Real Estate News

The Refi Boom Goes Bombastic


Written By: Jaymi Naciri
Tuesday, June 25, 2019

ldquo;Mortgage applications surged an impressive 26.8 WoWmdash;the largest jump since Jan 2015mdash;led by a massive spike in refis as mortgage rates tumbled alongside the Treasury market. 30-year rates ldquo;dropped back below 4.00mdash;the lowest since Jan 2018,rdquo; said Zerohedge.

So whatrsquo;s all the hubbub about? There are a few other key pieces of data at play:

bull; Refinances jumped 47 for the week last week and and are up 97 for the year.
bull; Mortgage volume rose by 41 over the same week a year ago.
bull; Real estate purchases also rose, by 10.

In fact, for the week of June 13, the 30-year fixed-rate mortgage is averaging 3.82. ldquo;Nearly halfway through the year, the popular product has managed a weekly increase only six times,rdquo; said MarketWatch. ldquo;It now stands at about a two-year low. The 15-year fixed-rate mortgage averaged 3.26, down from 3.28. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.51, down 1 basis point.rdquo;

That has led to a cavalcade of refinances by savvy homeowners and investors who are paying attention to the market and falling ratesmdash;and/or who have a good lender whorsquo;s reaching out to customers when they have a unique chance to save some money.

ldquo;Consumers saw an opportunityhellip;and took it mdash; in a big way,rdquo; said CNBC. ldquo;Will rates stay this low or move even lower? Impossible to predict, but there are definite signals.rdquo; Matthew Graham, chief operating officer of Mortgage News Daily, told them, ldquo;Wersquo;re in a consolidation phase now where markets are coming to terms with the longer-term move lower that began in late 2018. The next move will depend on how economic data evolves and whether there are any more trade policy bombshells.rdquo;

The Federal reserve was expected to raise interest rates several times this year, and many experts thought mortgage rates would follow. ldquo;Markets and some analysts now predict that the Federal Reserve will cut interest rates this year,rdquo; said MarketWatch.nbsp;In addition, ldquo;Demand for home loans has been so robust that mortgage lender profit margins turned positive for the first time in nearly three years.rdquo;



Copyright© 2024 Realty Times®. All Rights Reserved

 

Friday, March 29, 2024

Copyright ©2024 - Realty Times®
All Rights Reserved.