Borrowing costs remaining near record lows is giving a boost to the housing market this winter. Mortgage activity in Q4 2019 was higher than any period since 2005, according to new data from the Federal Reserve Bank of New York compiled by Realtor Magazine. An increase in new loan originations and refinances has been driven largely by historic lows in mortgage rates coupled with steady employment gains.
There was more $750 billion in new mortgage originations during the last three months of 2019, more than double the $344 billion earlier that year.
A surge in refinances by current homeowners looking to lock in lower rates has been a major contributor to the increase. Today, no-point conforming 30-year fixed mortgage rates are averaging 3.5 percent and 15-year rates are near 3.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.