Smart Borrower Blog

Archive for the ‘Mortgage Rates’ Category

Refinance Demand Jumps 79% on Rate Dive

Mar 11th, 2020 @ 11:48 AM by Amber Nelson

In the wake of the lowest long-term mortgage interest rates on record, American homeowners rushed to take advantage of home loan savings, according to the Mortgage Bankers Association. Refinance applications volume jumped an astounding 79% from last week and are up 479% compared with a year ago.  Refinances made up 76.5% of all applications, up […]

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Household Debt Hits Record High $14 Trillion

Feb 19th, 2020 @ 3:17 PM by Amber Nelson

Americans now owe a total of $14.15 trillion in household debt, according to the Federal Reserve, the highest level ever recorded. Household debt grew by $601 billion in 2019, at the fastest pace since 2007, right before the financial crisis. “Mortgage originations, including refinances, increased significantly in the final quarter of 2019, with auto loan […]

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Corona Virus Fears Fuels Mini-Refinance Boom

Feb 12th, 2020 @ 11:31 AM by Amber Nelson

Global fears about the Corona Virus have pushed mortgage interest rates lower, which in turn has inspired many homeowners to refinance, according to the Mortgage Bankers Association. Refinance applications rose 5% for the week ended February 7, 2020, and they increased an astonishing 207% compared with a year ago. During the same time, the average […]

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Housing Affordability Near 30 Year Highs

Jan 21st, 2020 @ 10:16 AM by Amber Nelson

Although rising home prices have led many to believe that buying a home is more expensive today, low mortgage interest rates and rising incomes have actually made homes more affordable now than almost any time in the past three decades, according to the National Association of Realtors. The NAR’s Housing Affordability Index rose to 163.5 […]

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Cash-Out Refinances Grew 28% Since 2018

Jan 1st, 2020 @ 7:16 PM by Amber Nelson

With home prices continuing to climb in the face of limited inventory, American homeowners have trillions of dollars in equity and they are taking advantage of it. According to real estate data firm Black Knight, cash-out refinance loans made up 52% of all refinance activity in the 2019 third quarter, up from just 24% a […]

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Mortgage Rates Hold Steady, But Likely to Fall in 2020

Dec 28th, 2019 @ 7:20 PM by Amber Nelson

Although long-term mortgage interest rates were unchanged in the latest week, experts are predicting rates to fall to record lows in 2020. The average rate on a 30-year fixed-rate mortgage slipped to 3.74% with 0.7 point in the week ended December 26, 2019, down from 3.75% the week before, according to data from Freddie Mac. […]

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Conforming Loan Limits to Jump in 2020

Dec 4th, 2019 @ 2:27 PM by Amber Nelson

To keep up with rising home prices, the Federal Housing Finance Agency has determined to raise the 2020 maximum conforming loan limits for Fannie Mae- and Freddie Mac-backed mortgages. The new single-family property conforming loan limit will increase to $510,400, up from the current $484,350. That jump is based on the 5.38% rise in U.S. […]

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Refinance Application Volume Shoots Up 300% Over Last Year…Thanks to Thanksgiving

Nov 29th, 2019 @ 10:23 PM by Amber Nelson

Total refinance application volume jumped 314% this week compared to last year but was just 4% higher than the week before, according to the Mortgage Bankers Association. And although that 300%+ number sounds jaw-dropping, it really isn’t a fair comparison as the same week last year included Thanksgiving. So of course, fewer people were out […]

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Mortgage Volume Unchanged Amid Lower Rates

Nov 6th, 2019 @ 2:36 PM by Amber Nelson

Long-term U.S. mortgage interest rates fell in the latest week, but it was not enticing enough to bring borrowers to the mortgage table, according to data from the Mortgage Bankers Association. The MBA’s mortgage application index fell 0.1% during the week ended November 6, 2019, with a 2% increase in refinance requests being offset by […]

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Fed Makes 3rd Rate Cut in 4 Months

Oct 30th, 2019 @ 1:01 PM by Amber Nelson

The Federal Reserve cut its target interest rate again Wednesday, the fourth decrease since July. The move was likely a hedge against mounting international financial trouble and brewing domestic slowing. The new federal funds rate range is 1.5% to 1.75%, representing a cut of 0.25%. Even though the U.S. economy is still in the midst […]

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