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Home / Business / Mortgage refinancing on a three-year high, fueled by low interest rates

Mortgage refinancing on a three-year high, fueled by low interest rates



NEW YORK – Lenders are flooded with mortgage refinancing requests that have not materialized since 2016, as US homeowners are taking advantage of recent interest rate cuts.

The Mortgage Bankers Association, a trading group, said home loan refinancing applications rose 0.4% last week compared to the previous week, reaching their highest level since July 2016. This was the fourth consecutive increase ,

The advance was granted as an interest rate on 30-year mortgages by Fannie Mae or Freddie Mac fell to 3.9 percent, the lowest level since November 2016, according to the MBA. Given growing concerns about a possible slowdown in global economic growth The cost of borrowing is falling by and large.

"Many people who have bought homes over the past three years are very careful about whether they can save money by refinancing." Jeff Tucker, economist at real estate data company Zillow Group.

On August 8, around 1

0 million homeowners were able to reduce their mortgage rates by at least 0.75 percentage points through refinancing, saving an average of around $ 267 a month, according to analyst Black Knight. Compared to last year, when interest rates rose and banks cut mortgage workers, that is far from the case. In 2018, funding applications for the MBA dropped to their lowest level in nearly two decades.

House mortgage applications slumped by 4 percent last week, which, according to the MBA, helped reduce the total volume of mortgage applications by 0.9 percent. The total volume has increased by about 70 percent since the end of last year.

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