Low Mortgage Rates – Low Mortgage Origination –
Sky Rocketing Mortgage Refinance Origination Loans
|Low Mortgage Rates Create High Demand for Mortgage Refinancing|
Mortgage rates are low as they can be. I honestly do not know if we are ever going to see rates this low ever again. Though I should say that statements like that somehow always seem to turn out wrong.
So with low mortgage rates you may suspect as I would that there would be high levels of mortgage originations. Consumers would take advantage of such an opportunity.
…yes and no.
See the level of mortgage origination is not rising. This is due to the low home sale figures as of late. But consumers are still taking advantage of the low mortgage rates.
Consumers are taking advantage of low mortgage interest rates by refinancing out of higher more profitable (for lenders) interest rate mortgage products into lower more borrower friendly loans. Mortgage refinancing activity has doubled from the end of the first quarter.
According to MBA, the Mortgage Banking Association, the weekly refinance index has pushed past 4,000. That number dwarfs recent index lows of 2,000.
I think that this is a positive trend for the American consumer. By refinancing into a lower mortgage rate homeowners will be able to lower monthly mortgage rates and and make home affordable.
This is a great opportunity for consumers to take advantage of the ability to utilize mortgage refinance as a debt solution in these times of financial hardship.