![]() A recent survey by mortgage service provider ServiceLink revealed that 50% of current homeowners said they're likely to consider a mortgage refinance this year if the right opportunity presents itself. The increase in refinancing is particularly interesting in light of the high-rate environment. The lack of available homes for sale has kept home prices from falling significantly over the past few months.īut despite strong headwinds, the data shows that there is still plenty of both buyer and homeowner interest in the current housing market. High rates also caused home sellers to feel trapped by their low rates and hold off on listing their homes, making an already severe shortage of inventory even worse. The result was a lightning-fast increase in mortgage rates throughout 2022, which made a home purchase more affordable for many would-be buyers - and a refinance impractical for many homeowners who had already locked in a low interest rate. Since then, rapidly rising inflation caused the Fed to reverse course and raise short-term rates. There's no denying that the housing market is nowhere near the levels of both purchase and refinance activity seen during the height of the pandemic in 2021 and early 2022, when rates hit rock bottom as a result of the Federal Reserve slashing the federal funds rate. ![]() Hawaii Alaska Florida South Carolina Georgia Alabama North Carolina Tennessee RI Rhode Island CT Connecticut MA Massachusetts Maine NH New Hampshire VT Vermont New York NJ New Jersey DE Delaware MD Maryland West Virginia Ohio Michigan Arizona Nevada Utah Colorado New Mexico South Dakota Iowa Indiana Illinois Minnesota Wisconsin Missouri Louisiana Virginia DC Washington DC Idaho California North Dakota Washington Oregon Montana Wyoming Nebraska Kansas Oklahoma Pennsylvania Kentucky Mississippi Arkansas Texas View Rates What it means for the housing market That's an improvement from the 51% it was down at the end of April (compared to April 2022). Year over year, the volume of refinance applications was 44% lower last week than they were this time last May. The number of refinance applications has been trending slightly higher over the past few weeks despite high rates. This is up from 27% during the first week of April. In fact, refis made up 28% of all mortgage applications during the seven-day period ending May 5. Refinancing applications were up by 10% from the previous week, reaching their highest level since last September. And while all applications were higher, the biggest jump occurred in the number of homeowners applying for a mortgage refinance - the type of loan that has been most severely impacted by the sharp rise in mortgage rates over the past year. ![]() Overall, total applications surged a little over 6% for the week ending May 5 compared to the prior week, according to the Mortgage Bankers Association. Last week’s slight downturn in mortgage rates prompted a bump in mortgage applications as both homebuyers and owners jumped at the chance to lock in a lower rate. Lexington Law’s credit repair consultants will work on your behalf to dispute mistakes on your report.
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