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Refinance fever is back, according to news reports from Bloomberg. The surge in refinancing was triggered by a drop in fixed 30-year mortgage interest rates below the benchmark of 4%. Freddie Mac, one of the nation’s biggest mortgage entities, announced that rates on 30-year fixed mortgages dropped to the lowest levels since last summer, after briefly rising rather dramatically during September of 2014. As a result, the majority of mortgage loan applications filed recently are for borrowers seeking to refinance.“The cheaper rates come during a time when most economists and homeowners were anticipating that interest rates would head north for an extended period,” explains Meghan Robinson, CEO of Sunovis Financial. “So this sudden drop came as a pleasant surprise. Under the circumstances, most homeowners had already gotten used to the idea that they had missed the boat and lost their opportunity to refinance. When this kind of reprieve presented itself, they didn’t waste any time jumping on the bargain rates and acting fast to take full advantage of the bargains while they last.”
The sheer volume of loan applications has doubled at some lenders over the past few weeks, and some are will have to hire more employees if the demand continues at this frantic pace. For about four consecutive weeks rates have been hovering at around 3.85%. Because the drop has been holding at those levels for a month or so, homeowners have had time to crunch the numbers, make refinance applications, and lock in the historically inexpensive rates.
Many mortgage brokers and loan officers have reported a sudden avalanche of business, with their phones ringing off the hook as customers make appointments to refinance out of more expensive home loans into more affordable ones. Even some 30-year jumbo loans, which typically carry hefty premium rates, are being offered for as low as 3.63%. But although rates at or below 4% percent have been pretty abundant during the past few weeks, those rarified loans that dip significantly under the 4% level are harder to snag. Homeowners seeking a refinance or people wanting to finance a new purchase can benefit from the increased competition at times like these. Experts like Robinson highly recommend that anyone looking for a loan shop around for the best rates and terms. But they also caution borrowers to be proactive and not succumb to procrastination.
“Don’t sit on the fence,” advises Robinson, “because these rates below 4% are probably going to disappear soon, and we likely won’t revisit them for a long, long time. You may be busy because of the upcoming holiday season, but if you want to refinance, it pays to act promptly and avoid indecision. Otherwise, you may wind up unable to refinance for decades because the rate you wanted or needed just is not available.”
Contact Info:
Name: Meghan Robinson
Email: Send Email
Organization: Sunovis Financial
Address: 7500 College Blvd Ste. 500
Phone: 855 243-7191
Website: http://www.sunovisfinancial.com
Release ID: 68122