Mortgage Refis About to Pop!

The actual (and expected) movement with the Federal Reserve (FED) on interest rates as of late, has stired up in one sector of the mortgage market.

Experts are expecting to see a significant spike in the number of mortgage refinances taking place in the coming weeks. Michele Raneri, vice president of consulting at TransUnion, expressed that he expects a rapid uptick in the refi activity from homeowners, with a wave of homeowners pursuing refinancing to ease the financial weight of their mortgages; a weight that is affecting many mortgage holders across the country.

Currently the central bank is steady between 5.25 and 5 percent for the third consecutive time benefiting mortgage rates that are nearing the 7 percent mark, down from 8 percent just a couple months ago. Even though Powell has expressed his goal of restoring stability aiming for a target of 2 percent annual inflation rate.

Powell noted that since January 2021, roughly 3 million mortgages have been issued with interest rates of 6 percent or higher, paying an average mortgage of $2,201 per month. “If rates reduce to 5.5 percent, this could result in a significant savings, by refinancing a homeowner could save $300 a month or reducing the original $2,201 to roughly $1,917.” 

The Mortgage Banker Association (MBA) reports 19.42 percent increase in refinance applications compared to previous weeks, and suggest that some homeowners are pursuing refinancing, even though they bought their homes as recently as October. 

For continued reading or related articles check out our CourtTrax discussions among the Similar Articles below. 

Similar Articles: 

2023 Q3 Housing Recap

More From Our Blog

Monday June 3, 2024

Top 5 Issues in the Title Industry: June 2024

5 months into 2024 and already the title & real estate industries are under fire […]

Read More

Wednesday May 29, 2024

Top Legal Industry Cases: Update for 2024

The 2024 top cases are shaping up to be a doozy in the United States including […]

Read More

Friday May 24, 2024

West Coast Title Insurance Fraud: 2024 Update

Fraud is off to a quick start in the West Coast and these are the top […]

Read More