Low mortgage rates driving more homeowners to refinance

Low mortgage rates driving more homeowners to refinance

Low mortgage rates driving more homeowners to refinance
The Mortgage Bankers Association reported this week that total mortgage loan application volume climbed 4.1 percent on a seasonally adjusted basis from the previous week, driven primarily by a major increase in refinance volume. This is the third consecutive week the MBA reported a week-over-week increase.

Refinancing amid record-low mortgage rates accounted for 64.8 percent of all mortgage applications. The refinance index is currently 122 percent higher than it was last year when mortgage rates were over a point-and-a-half higher than they are today.

Record-low borrowing costs have made millions of homeowners in the U.S. eligible to refinance and save on their monthly mortgage payment. Those looking to refinance will find conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 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.