The number of mortgage refinances has been rising, doubling in fact, over the last four months thanks to the recent drop in mortgage rates. Rates are now seeing their lowest level since late 2016.
The biggest driver, seeing a 300% increase since March, has been homeowners with very young mortgages–those who purchased a home some time in 2018.
According to Freddie Mac, rates will continue to stay low, stating “The recent stabilization in mortgage rates reflects modestly improving U.S. economic data.” It goes on to cite “a more accommodative tone from the Federal Reserve [in response to] the rising downside economic risk from trade tensions and soft global economic data”.
The 30-year fixed rate mortgage averaged 3.75% last week. That’s down from a much higher 4.55% in the last week of June 2018, and 4.95% in November 2018. That means today’s borrowers can refinance at over a 1% rate discount depending on when they took out their mortgage. Many recent home buyers can save a lot of money, especially considering they’ve barely scratched the surface of their outstanding loan balances.
If you think you might benefit from refinancing, fill out the form below!