The all time low mortgage interest rates over the past few weeks have stimulated demand in refinancing. Increased number of mortgage refinances have been the lifeblood keeping many mortgage and companies going during this time when home sales are so slow. But, it looks like that demand for refinancing, despite the extra low interest rates is waning. Here is a great graph and some information from the Mortgage Daily News, that shows some statistical evidence from the weekly Mortgage Applications Survey.
Has refi demand topped out? Have purchase apps bottomed? The latter is far less likely than the former. Color from lock desks confirms the slow down in application activity last week, but you tell me; Are you adding new borrowers to your pipeline as fast as you were in late summer? Are you still refinancing clients who’ve just refinanced in the past 20 months? Do you think we’ve hit another peak in refinance demand?Relative to the week before, our loan pricing data shows mortgage rates were actually worse late last week than they were on Wednesday, Thursday, and Friday in the previous week. This implies the MBA received mortgage rate survey data early last week because borrowing costs went on a three day skid heading into the weekend
via Refinance Apps Decline for Third Consecutive Week. Has Demand Topped Out?.
The good news for Utah Real Estate is that it does look like purchase applications are up bit. That means we should see a higher number of home sales over the next few months than we have seen during July and August.
