As the mortgage rates have climbed up, the refinance activity fell by 23% last week from the previous week, as reported by the Mortgage Bankers Association. Since Memorial Day, mortgage rates have steadily risen to as high as 5.8% last week and then dropping to around 5.4% last Wednesday.
When the rates were at and below 5%, many borrowers put in their application and are currently still in the process to get the loan. Those who did not lock in low rates then for refinance should reconsider refinancing if the rates don’t drop back to at least 5% if not below it. Otherwise refinancing would not make sense. There is a forecast by a research firm, The Field Check Group, saying that if the rates do not return to 5%, nearly $200 billion in refinance loan applications could be canceled.
Currently some borrowers are opting for adjustable-rate mortgages as they find themselves unable to get the low rate they’d hoped for on a 30-year fixed mortgage.
Refinance Activity Has Fallen
Popularity: 1% [?]
Add A Comment