It’s no secret that refinancing has surged in recent months, but new data shows that refinancing is at the highest level in more than four years. Refinances are making up more than half of all closed mortgage loans right now– 51 percent of all closed loans in October 2019.
Low mortgage rates are definitely the motivator for homeowners to contact their lenders for a lower monthly payment. But cash-out refinances have been popular as of late, as homeowners are taking advantage of their home’s equity in order to make home improvements or consolidate debt.
The month of October averaged a 3.69 percent interest rate for 30-year, fixed-rate loans. That was down more than a full percentage point from a year earlier, when rates averaged 4.83 percent.
As a result of the increasing demand for refinancing, the time to close on these loans also increased. It took an average of 42 days to close a refinance loan in October — up from 39 days in September.
Adjustable-rate mortgages also increased for the month of October, accounting for 5% of all closed loans. According to Freddie Mac, 5/1 ARMs averaged a 3.39 percent rate last week — down 70 basis points from a year ago and nearing their two-year low of 3.31 percent.
If you haven’t looked into refinancing yet, now is the time! Contact us for a no cost, no obligation quote: