You’re Refinancing Again?
With 30-year fixed loans averaging below 4.25 percent for the past three weeks, even home owners who refinanced or purchased less than a year ago are considering a refinance.
The trend could take on greater urgency in the wake of an MBA forecast calling for long-term mortgage rates to rise in coming year.
Borrowers who plan to remain in their home for many years to come have an opportunity to lower their monthly mortgage payments, and they also have ample time to recoup the costs of a refi.
Source: Wall Street Journal, Amy Hoak(11/02/10)
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30-Year Rates Dip Back Below 5 Percent
Freddie Mac documented a decline in mortgage rates during the week ended March 4, with 30-year fixed home loans slipping to 4.97 percent from 5.05 percent and 15-year interest averaging 4.33 percent.
Also, the Mortgage Bankers Association reported that its index of home loan applications jumped 15 percent during the week ended Feb. 26. Refinancing activity was up 17 percent, and purchase demand rose 9 percent.
Source: Kansas City Star (03/05/10)
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Refinancing Drives Mortgage Activity
Mortgage activity rose last week to the highest level in about two months, mainly from borrowers locking in low mortgage rates by refinancing, the Mortgage Bankers Association said on Wednesday.
Nearly three of every four loan requests last week was for a refinancing rather than a purchase, the industry group said. Total mortgage applications, based on the group’s seasonally adjusted market index, rose 8.5 percent to 665.6, the highest since early October.
Demand for loans to buy a home increased by 4.0 percent to 241.5, the highest since the last week of October, while refinancing applications jumped 11.1 percent to 3,185.9 last week to a two-month high, the industry group’s indexes showed.
Average 30-year mortgage rates rose 0.09 percentage point to 4.88 percent but haven’t moved much from all-time lows.The rate was down from 5.44 percent a year ago and compared with a record low of 4.61 percent set in March, according to the Mortgage Bankers Association.
Source: Reuters, Mortgage Bankers Association (11/9/2009)
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Treasury Makes Refinancing More Attractive
The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home’s value.
Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.
At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.
Fannie said in a statement, “The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.”
Source: Reuters News, Patrick Rucker (07/01/2009)
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