Smart Borrower Blog

Archive for the ‘Mortgages’ Category

Cash-Out Refinances Grew 28% Since 2018

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 […]

Mortgage Rates Hold Steady, But Likely to Fall in 2020

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. […]

Conforming Loan Limits to Jump in 2020

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. […]

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

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 […]

Household Debt Hits Record High of $14 Trillion

Total U.S. household debt rose 0.7% in the third quarter to $14 trillion, a new all-time high, according to data from the New York Federal Reserve. Household debt – including things like mortgages, credit cards, student loan – has now surpassed the previous high from 2008 by $1.3 trillion on an unadjusted basis. Most of […]

Mortgage Volume Unchanged Amid Lower Rates

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 […]

Fed Makes 3rd Rate Cut in 4 Months

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 […]

Low Mortgage Rates Squeeze Housing Inventory

Lower mortgage interest rates have increased demand for housing, pushing current market inventory down 2.5% in September, according to Realtor.com. That’s a significantly bigger decline than August’s 1.8% decrease. And the housing supply could drop even farther in coming months. Long-term mortgage interest rates have dropped to 3.5% from 5% just a year ago. That […]

Lower Mortgage Rates Pushed August New Home Sales Up

Sales of new U.S. single-family homes jumped 7.1% in August, according to the Commerce Department, bolstered by lower mortgage interest rates. Sales outpaced predictions by economists surveyed by Reuters, who had forecast they would grow by just 3.5% last month. New home sales rose to a seasonally adjusted annual rate of 713,000 in August, up […]

Mortgage Applications Decline Again Amidst Lower Rates

Even though long-term mortgage interest rates fell last week, demand for home mortgage loans continued to drop, according to data from the Mortgage Bankers Association. The MBA’s mortgage application volume index decreased a seasonally adjusted 3.1% in the latest week. On a yearly basis though, application demand is up 62%. The drop was led by […]