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
As per a new survey from the country’s largest mortgage trade association, refinance applications rose, only once in eight weeks otherwise they have been continuously dropping, and the numbers are much lower than they were in 2020.
With COVID-19 cases reducing and the economy improving borrowers may not have much time to enjoy a low refinance rate.
The Mortgage Bankers Association reported that in the second week of Nov, the overall mortgage applications dropped 2.8% leading to a 5% drop in refinance activity. Refi demand fell 31% compared to the same time last year.
Joel Kan, forecasting chief of MBA said that all mortgage rates increased, the 30-year fixed rate rose from last week’s 3.16% to 3.20%.
The rates of 30-year mortgages were averaging 2.97% since early August which are comparatively cheaper than they were before Covid 19.
With vaccines and booster shots, the Covid cases in the U.S. will not shoot up as it was in January when the mortgage rates hit rock bottom. Record-low mortgage rates might not return again.
Instead, of recession, we are heading towards inflation, where the prices shot up in October at the fastest pace in more than 30 years, so the Federal Reserve will raise the interest rates and pull back their other policies which led to low mortgage rates during the pandemic.
A refi with a monthly savings of just $100 can also put $6,000 back in a homeowner’s pocket over five years.
With this money, they can pay off their high-interest debt, fund their children’s education, or invest further.
If the borrower is ready to move forward with a refinance, they need to have a good credit score, check their mortgage rates from a minimum of five lenders to get the best loan available in their area this guarantees them the lowest mortgage rates.
Reference Source: Yahoo
