Lower Rates Driving Refinance Volumes Higher
ByU.S. home loan application volumes rose last week to the highest level since December of 2010 as lower rates and lending costs made home refinancing more appealing. The Mortgage Bankers Association’s index of loan applications rose 7.8% in the week ended May 13th. MBA reported that refinancing volume increased13%, while the home buying gauge dropped 3.2%.
Many borrowers are giving lenders a second chance to lower their monthly payments. Many homeowners are seeking help to get the best mortgage rates for refinancing. Rates have dipped to the lowest levels in nearly six months. Qualified homeowners now have the ability to refinance their existing mortgages to lower the housing expenses. Some homeowners are even refinancing their 1st and 2nd mortgage together and saving a bundles in the process.
MBA said that the average rate on a 30-year fixed loan decreased last week to 4.60%, the lowest since the end of November, from 4.67%. Refinancing costs reached 4.21% in October, a record-low dating back to when the group’s records began in 1990. The average rate on a 15-year fixed mortgage dropped to 3.75% from 3.81%, the report showed. Read the original article, Lenders Report Lower Rates for Refinancing.
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