Home Mortgage Refinancing Higher; Mortgage Rates Well Below 5%
Posted on | November 12, 2009 | 1 Comment
Home mortgage refinancing was higher over the last week as mortgage rates continued to fall further below 5%. The data collected illustrated the increased demand for refinancing but also showed a nine year low for home purchase demand. The extension of the first time home buyer tax credit has yet to take effect when it comes to data being released.
As home owners continue to work through the purchase process we will begin to see an increase in home purchase numbers. Not only are future home owners getting an $8000 tax credit but they are also seeing mortgage rates near historic lows. The average for 30 year fixed mortgage rates was 4.9% for the week that ended November 6th, 2009. The Mortgage Banks Association stated that the record low is 4.61% that was set in March.
Refinancing loans made up over 71% of all mortgage applications. This is the highest percentage we have seen since mortgage rates were below 5% back in May. The ability to refinance to lower rates and save money on a monthly mortgage payment is extremely attractive to home owners. If rates continue to fall we can expect to see even more increases in refinance applications.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Mike Garner
Comments
One Response to “Home Mortgage Refinancing Higher; Mortgage Rates Well Below 5%”
Leave a Reply
November 12th, 2009 @ 4:19 pm
The reason mortgage applications are low is because people have given up on getting loans. It’s ugly out there. We’ve got record amounts of foreclosures and repossessions (see: http://www.repofinder.com ). Until the lenders defrost the markets we’ll only get worse.