Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
Compared to a year ago the refi applications have dropped sharply shows a new survey.
The lenders warn that mortgage borrowers do not have much time to take advantage of the low refinance rate as it is a known fact that the Federal Reserve will raise interest rates in 2022.
The Mortgage Bankers Association reported that there was a decline of 4% in the overall mortgage applications in the 2nd week of Dec.
Refi demand was down by 41% compared to the same time in 2020.
The MBA’s forecasting chief Joel Kan said that at current rates not many homeowners can refinance.
In 2019 December, the 30-year average was at 3.99% meaning the rates on home loans remain much cheaper than they were before the pandemic broke.
Some homeowners have been avoiding refinancing because they’re hoping that lower rates will return, but it looks like a difficult task.
The MBA predicts that by the end of 2022, the 30-year mortgage rates will hit an average of 4%.
According to a recent study by Zillow, 78% of homeowners did not make use of the ultra-low rates. Among those who refinanced close to 50% saved $300 or more each month.
The prices shot up in November at the fastest pace along with that, the Fed indicated that it expects to hike interest rates three times next year.
America’s central bank also plans to slow down its purchase of Treasury bonds and mortgage-backed securities to energize the economy.
At the moment still, many borrowers can find 30-year refi mortgages under 3%, and 15-year refinances at 2% or lower provided they have an excellent credit score.
When moving forward with a refinance it is advisable to check mortgage rates from a minimum of five lenders to get the best rate available.
Reference Source: Yahoo Sports
