Rates fluctuate everyday and are based on several factors. For an exact rate quote, submit your request HERE for a free evaluation.

PMMS 5/27/2021

Mortgage rates fluctuated again last week, down 5 basis points to 2.95% after managing to pop back up to 3% the week prior. Mortgage rates have been hovering around 3% for over a month now, as macro economic factors left the bond market hesitant over the global recovery.

“Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” said Sam Khater, Freddie Mac’s chief economist. “In fact, homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 dollars annually. Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.”

Low rates not only save homeowners looking to refinance, they also help offset the steep increases in home prices. Steep competition — spurred by low mortgage rates, demographic factors and an improving national economy — is pushing home prices up at the strongest pace in a decade, with sales happening at lightning speed and often for well above list price.

Record low rates lit the fire under what was a scorching hot market in 2020 with some economists speculating rising rates may be the best option for cooling it back down. As rates rise, demand wanes and builders can catch up on the few months of inventory left for hungry borrowers.

“Mortgage rates over 3.75% should change the housing market landscape from its currently overheated state for both the new and existing home sales,” said Logan Mohtashami, HousingWire’s lead analyst.

MBA 5/26/2021

After two straight weeks of increases, mortgage applications dropped 4.2% for the week ending May 21, 2021.

“Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Kan noted that refinances decreased by 7%, and 9% lower year over year — driven by declines in both conventional and government refinance activity.

“And purchase applications increased for the second time in three weeks, rebounding after a rather weak April with mostly weekly declines,” he said. “While purchase activity was around 4% lower than a year ago, the comparison is to last spring’s large upswing in activity as pandemic-related lockdowns lifted.”

.

Contact us…We can help!

Other useful links

• How to improve your credit
• The 20% down rule on conventional
• What is Escrow?
• How is income calculated?
• Why your assets matter
• Mortgage Calculator
• Is Credit Karma accurate?
• FHA vs Conventional, which is better?

What To Do Next

• • Text us
  • Request A Free Consultation
  • Share On Facebook With Friends And Family
  • Book a Phone Call In My Calendar To Discuss Options