New Refinancing Data Shows Millions Of Homeowners Are Missing Low Mortgage Rates

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New Refinancing Data Shows Millions Of Homeowners Are Missing Low Mortgage Rates

New Refinancing Data Shows Millions Of Homeowners Are Missing Low Mortgage Rates

Homeowners Note: Millions of you are missing out on hundreds of dollars that you could have saved by refinancing your mortgage.

The number of applications for mortgages to refinance home loans has dropped for the second straight week, according to the latest report from the mortgage industry trading group. Demand for homebuyer loans is also declining, despite mortgage rates still historically low

Borrowers still have time to get a cheap loan, although perhaps not too much. Rates on 30-year mortgages remain below 3% on average, but with the economy emerging from the pandemic, rates are likely to rise again soon.

Homeowners and Buyers Retreat

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Mortgage applications fell 4% last week, to their lowest level since February 2020, according to the Mortgage Bankers Association. reported on wednesday… The decline was caused by the fall in refinancing as well as loan purchase requests during the week ending May 28.

Bids for Refi fell 5% from the previous week, but were 6% higher than the same week a year earlier. Refinancing accounted for a slightly smaller share of total mortgage activity last week: 61.3% versus 61.4% a week earlier.

Purchase credit applications used by buyers also fell, declining 3% last week and 2% from a year earlier. The MBA reports that the number of purchase requisitions falls for five consecutive weeks on an annualized basis.

“Insufficient housing inventory, obstacles to accelerating new construction and rapidly rising house prices continue to hold back buying activity,” explains Joel Kahn, chief forecaster for the MBA.

Is this a sign of the end of the pandemic buying boom? Perhaps, but the supply of housing did not match the demand. The coming weeks will be a good indicator of how much the market is shaking up this summer.

“Later this year, we will see more products enter the market as further COVID-19 vaccinations are carried out and potential home sellers will find it more convenient to list and display their homes,” said Lawrence Yoon, chief economist at National associations of realtors.

Don’t Think Mortgage Rates Will Remain Low

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Mortgage rates recently dropped below 3% in a popular and lengthy study by mortgage giant Freddie Mac.

The average interest rate this week on the popular 30-year fixed rate mortgage is just 2.99%. Even though it is above the all-time low in January, it remains one of the lowest in history, according to Freddie Mac. Last year, the average rate on a 30-year fixed-rate mortgage was 3.15%.

Low rates have been a side effect of the COVID economic crisis. Rates tend to fall when the economy is sluggish and rise as it improves.

Mortgage experts predict that rates will range from an average to a high 3% by 2021.

But with current rates, 14.1 homeowners can save on average $ 287 per month by refinancing, according to mortgage data and technology provider Black Knight.

How to find a low fare – while you can

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If you’re ready to buy or looking to explore refinancing options, shop around for the lowest mortgage rate available in your area for someone with your credit rating. Haven’t seen your result for a long time? It’s easy today take a look at your credit score for free

Research has shown that comparative shopping will bring you the most savings. Therefore, if you are considering refinancing your mortgage, be sure to checking rates of at least five creditors

If a refi is not possible at the moment, there are other ways to reduce homeownership costs. When it comes time to buy or renew your homeowners insurance policy, get quotes from several insurers to make sure you don’t pay more than you owe.

And remember that when you apply for a mortgage, lenders will want to see signs that you will be able to repay your loan. It won’t look good if you have multiple high-interest debt. If this is your situation, consider consolidating these debts into one, low interest debt consolidation loan

You will reduce the cost of your debt as well as potentially pay for it sooner.

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