Home Loan Rates Decline to Break Records 3rd Straight Week
The era of record low interest rates has still not come to an end. Home loan rates dropped to record lows for the third week in a row. Most industry insiders believe that home financing market will stay weak over the next few months as the housing market adjusts to the end of government incentives.
According to Jerry Mlinar of Woodfield Planning, a Illinois mortgage lender said, “First time home buyers are motivated by low rates, but existing homeowners have a huge incentive to refinance because they stand to save significant money monthly immediately.” Mlinar confirmed that his company saw an increase in home refinance applications, but cautioned that refinance guidelines for had tightened over the last few years. The lender said that the stated income and no equity mortgages are no longer available.
The average 30-year mortgage rate was little changed in the week ended July 9th, dipping to 4.49%. The mortgage rate rested just below the record low of 4.61% set in March 2009, according to the MBA’s records that date back to 1990. Fifteen-year mortgage rates dipped to 4.08% last week from the record low 4.06 % set the prior week. FHA and VA rates posted a rate reduction as well and more borrowers requested rate and term refinancing rather than cash out loans. Read the original Mortgage Related News Article > 3rd Week of Record Low Mortgage Rates Drive Refinancing
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