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Borrowers Applying For Refinance At Rates Not Seen In Years Bookmark and Share

New figures released today from the Mortgage Bankers Association's (MBA) weekly market survey show that homeowners have been applying for mortgage refinance at levels not seen in three years.

The survey shows that the number of applications submitted last week rose 2 percent over the previous one, making refinance account for 81 percent of all mortgage business. The last time the MBA had reported a larger occurrence of refinance was in their report for the week ending April 19, 2009.

These numbers coincide with recent reports from the Federal Housing Finance Agency (FHFA) that signal an uptick in the number of homeowners taking advantage of the government's Home Affordable Refinance Program (HARP 2.0).

This report shows that one in every five borrowers who have applied for refinance have done so through this program. HARP 2.0 was designed to help homeowners who took out mortgages through the government backed entities Fannie Mae and Freddie Mac lower the monthly interest payments on underwater loans.

The MBA survey didn't indicate any change in the average interest on fixed rate loans, although current figures remain at all time lows for new borrowers and homeowners looking to refinance.

Palm Beach, Florida, based Consumer Daily developed their own system to measure average interest that indicates many borrowers are receiving even lower rates than those reported by the MBA.

To see what rates you may be able to qualify for, discuss potential refinance options with a professional at New Penn Financial. They can help you decide whether or not to hop on the bandwagon and join the increasing number of homeowners restructuring their mortgages.

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