Adjustable Rate Holders Begin New Refinance Boom
Both long and short-term mortgage loan interest rates have dropped back to historic lows in the past two weeks, and consumers have noticed. Nationwide, mortgage applications jumped more than 6.5 percent in the most recent week, according to Christian Werner, CEO of New World Mortgage.
Applications for refinancing mortgages jumped more than 10.3 percent, says Werner. New home loan applications increased 3.6 percent. Most borrowers are applying for fixed rate loans.
It's two years after the last big refinancing boom. A lot of people refinanced with short-term ARMs and as those mortgages do their annual rate readjustment, homeowners will be seeing their payments heading back up. For the security of a fixed rate mortgage and for the savings they may be able to achieve, lenders are about to see another refinance boom for as long as these rates hold at these historically low levels. |
Commercial Real Estate 
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