Economy Falling mortgage rates set off a rush of borrowing

Falling mortgage rates set off a rush of borrowing

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<p class = "canvas-atom-canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "As an American, mortgage applications have increased by more than 30% increased herd use the lowest mortgage rates in monthssaid a trading group on Wednesday. “data-reactid =” 31 “> Mortgage applications rose more than 30% as Americans took advantage of the lowest mortgage rates in months, a trading group said on Wednesday.

“The mortgage market has had a strong start to 2020. The number of applications has increased across the board over the past week,” said Joel Kan, vice president of economic and industry forecasts for the Mortgage Bankers Association. “Lower interest rates gave borrowers a greater incentive to act.”

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you think about it buy a house“data-reactid =” 33 “> If you are thinking about buying a home or already own a mortgage but could improve by refinancing, you should think about joining the crowd. But if you could improve by refinancing, you should thinking about joining the crowd.

The demand for mortgages is growing rapidly

Fireworks from a house
<figcaption class = "C ($ c-fuji-gray-h) Fz (13 pixels) Py (5 pixels) Lh (1.5)" title = "Rambaud Julien / Shutterstock
Low mortgage rates have sparked fireworks in residential construction.
“data-reactid =” 51 “>

Rambaud Julien / Shutterstock
Low mortgage rates have sparked fireworks in residential construction.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Total mortgage applications increased by 30 at the end of the week , January 1, 10%, the Mortgage Bankers Association says, “data-reactid =” 55 “> Overall, mortgage applications increased 30.1% during the week ending January 10, the Mortgage Bankers Association said.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Pioneer in refinancing. Homeowners applied for 43% more than the previous week, and last week's refi applications rose 109% year over year – that is, lenders received more than twice The number they received in the first full week of January 2019. “data-reactid =” 56 “> The pioneering role in refinancing was enormous, with homeowners applying for 43% more than in the previous week and refi applications in the previous week up 109% year over year, meaning lenders have increased more than twice the number they received in the first full week of January 2019.

Mortgage “purchase requests” – for loans to buy houses – rose 16% last week and were 8% higher than a year ago. But refinancing caused the most excitement last week, accounting for 62.9% of total mortgage lending.

“It remains to be seen whether this strong refinancing pace is sustainable,” says Kan.

Translation: Some homeowners who could refinance are missing low interest rates.

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Is that you? Look at that The best mortgage rates today where you live. “data-reactid =” 60 “> Is that you? Check out today’s best mortgage rates where you live.

Applications rise with falling mortgage rates

Arrow down and house with money on white wooden background. Falling market price for real estate.Arrow down and house with money on white wooden background. Falling market price for real estate.
<figcaption class = "C ($ c-fuji-gray-h) Fz (13 pixels) Py (5 pixels) Lh (1.5)" title = "ADragan / Shutterstock
Mortgage rates have dropped to levels that have not been seen in months.
“data-reactid =” 78 “>

ADragan / Shutterstock
Mortgage rates have dropped to levels that have not been seen in months.

<p class = "Screen Atom Screen Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The borrowers hurried to look for the mortgage for According to the Federal Financial Supervisory Authority, the rates fell to the lowest level in three months weekly survey by mortgage giant Freddie Mac. “data-reactid =” 82 “> According to mortgage giant Freddie Mac’s weekly survey, borrowers hurried to take out mortgage loans after interest rates dropped to their lowest level in three months.

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Interest rates were weighed on by US tensions with Iran last week. As investors sought security in US government bonds, bond prices rose – and their yields or interest rates fell. Mortgage rates tend to follow the trail of 10-year Treasury bills.

Interest rates fell, with 30-year fixed-rate mortgages averaging 3.64%, after 3.72% a week earlier. For 15-year fixed-rate home loans – a popular option for refinancing – interest rates fell from 3.16% to an average of 3.07%.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Homeowners may find it Save money through refinancing, even if their current mortgage dates back to 2018. “data-reactid =” 89 “> Homeowners may find that refinancing saves them money, even if their current mortgage dates back to 2018.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Use this calculator “data-reactid =” 90 “> Use this calculator to display the type of monthly payment you can expect from today’s low interest rates.

The outlook for mortgages

Couple with real estate agent visiting modern homeCouple with real estate agent visiting modern home
<figcaption class = "C ($ c-fuji-gray-h) Fz (13 pixels) Py (5 pixels) Lh (1.5)" title = "goodluz / shutterstock
Low prices help convince buyers.
“data-reactid =” 108 “>

goodluz / shutterstock
Low prices help convince buyers.

Freddie Mac will report new mortgage data on Thursday. Government bond yields fell this week, suggesting mortgage rates will continue to fall.

Kan says this will help to fill up with something that real estate agents have already reported: a very early start to the spring season for buying a house.

“Low interest rates and a solid labor market continue to encourage potential buyers to enter the market,” he says.

<p class = "Canvas-Atom Canvas-Text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "The government reported last Friday that the US Unemployment remained at a 50-year low in December at just 3.5% 145,000 new jobs were added as employersEmagazine.credit-suisse.com/app/art…7805 & lang = DE The government reported last Friday that the US unemployment rate remained at 3.5% in December, at a 50 – year low, as employers created 145,000 new jobs.

Freddie Mac predicts that mortgage rates will remain low for 30 years in 2020, averaging only 3.8% this year.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Check out The best mortgage rates today where you live. “data-reactid =” 117 “> Find out about today’s best mortgage rates where you live.

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