Mortgage refinances rise for second straight week – how to get the most of out of yours
Refinance applications increased this week despite a slight uptick in mortgage interest rates. (iStock) Mortgage refinance applications increased for the second consecutive week, driving an overall boost in mortgage applications for the week ending on June 18, 2021, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association. Mortgage applications overall increased by 2.1% from the week before, and the refinance part of the measurement index increased 3%. And while refinances were 9% lower than last year, partially due to slightly higher interest rates, refinance activity remained strong. The refinance share of all mortgage activity increased to 62.5% of total mortgage applications, up from 61.7% the week before, the MBA’s survey showed. Visit Credible to see your mortgage refinance options and find your personal interest rate. FED PROJECTS TWO RATE HIKES BY 2023 – HOW TO LOWER YOUR RATE NOW Refinances are up despite rising rates "Mortgage rates increased last week, with the 30-year fixed rate rising to 3.18% – the highest level in a month," said Joel Kan, MBA associate vice president of economic and industry forecasting. "Despite the jump in rates, refinances increased for the second consecutive week, pushed higher by a 4% bump in conventional refinance applications. "Purchase applications have regained an upward trend over the past few weeks," Kan continued. "Activity was slightly higher for the third straight week, but remained lower than the same week a year ago. Government purchase applications drove most of last week’s increase, which also contributed to a slightly lower overall average purchase loan size." While rates were up slightly, they continue to remain near historic lows. Many homeowners continue to refinance their mortgages before rates are anticipated to increase in the months ahead. At the latest Federal Reserve meeting, Federal Open Markets Committee members voted to keep interest rates low for now but signaled there could be more rate hikes than originally planned in the near future. If you want to refinance your home before rates increase, visit Credible to compare multiple mortgage lenders at once and see today’s refinance rates. FEDERAL RESERVE ELECTS TO HOLD INTEREST RATES AT 0% How to get the most out of your mortgage refinance Refinances are down slightly from last year but historically low interest rates and high home values that are increasing home equity are still making refinances an extremely popular option. Other lines of credit like student loans and personal loans are also increasing amid low interest rates. Below are a few tips for how to get the most out of your mortgage refinance. HERE’S WHY YOU SHOULD (OR SHOULDN’T) REFINANCE YOUR MORTGAGE Refinances are on the rise as homeowners look to capitalize on today’s low interest rates, obtain a lower payment or take out equity in their home for home improvements or to pay off credit cards. Even slight increases show interest rates still hovering near the 3% mark, which could lower the monthly payments for many homeowners. With the Federal Reserve beginning to talk about more interest rate hikes in the next few years, homeowners who are looking to refinance their home loan now before refinance rates increase should contact Credible to talk to a home loan expert about their options and get all their questions answered. Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column. Source: Read Full Article