If you are thinking about financing or refinancing your home, you aren’t alone. Due to economic change in Europe, US mortgage rates have hit a record low. Home owners and home buyers alike are jumping at the opportunity to get the best rate possible. In fact mortgage applications have increased to just under 10%.
In the week of May 11, application activity for mortgages rose 9.2%. The Mortgage Bankers Association reports that more and more American’s are looking to finance or refinance now in order to take advantage of this record low. Refinance applications dominated the total number of applications received, making up a whopping 75% of total applications. This alone is a rise from 13% in the refinance sector from just last week.
Interestingly enough the Home Affordable Refinance Program, or HARP, had nothing to do with this increase in activity, according to the vice president of research and economics for Mortgage Bankers Assoc., Michael Fratantoni. Fratantoni reported, “The increase in refinance activity last week was concentrated in the conventional sector, which was up around 14% for the week, while government refinance applications were up only 4%.”
Let’s get down to the numbers, shall we. The 30-year FRM backed by the FHA declined to 3.75%, and the 15-year FRM fell to 3.26%. A conforming loan balance of $417,500, or less, on a 30-year Fixed reached its lowest rate in the history of the survey: 3.96%. So, if you weren’t thinking of refinancing, are you considering it now?
A lot people are coming to the conclusion that they can’t afford not to do all they can to make the most of this low rate, and that number of people is on the rise. Whether you are a home owner or a home buyer, you have to admit now is an exciting time. Mortgage rates are at an all time low and real estate prices are falling, would it be right for you to take advantage of this?