Fewer Homeowners Refinancing

Refinancing Dropped Considerably

Consumers across the U.S who applied for new home mortgages recently dropped considerably, as less borrowers sought refinancing of their current mortgages. Informa Research Services, recommends that consumers take a look at online tables of interest rates to locate the best loan rates to refinance their present home mortgage.

The overall mortgage lending market was off 9.6% from the week that ended August 26, largely driven by a 12.1% reduction in the amount of refinance real estate loan applications, in a report of the latest weekly figures released by the Association of Mortgage Bankers . Although, the number of home buyers actually trickled up 0.9%, although stayed near historically reduced levels. The refinance portion of the mortgage lending market dropped to 77.9% from the prior week’s 79.9%, according to the report.

Homeowners who refinance their existing home mortgage with a substantially less rate than their current one can decrease their monthly house payments by several hundred dollars. One of the most effective ways of finding the lowest local loan rates in your locale is to look at the online interest rate tables like those on ERATE.com.

Mortgage Loan Application

Taking into account the increase of average points expended, mortgage rates were effectively unchanged from last week, Refinance application volume was down for the second week in a row from recent highs, in spite of rates remaining close to a 10-month slump, while purchase volume stayed near a 15-year lows.

By Gene Wright

New Article Sep 7, 2011

Real Estate Finance