Fannie Mae predicted this week that refinances will surge to the highest levels since 2003 as mortgage rates continue to hover near historic lows. Lenders are expected to originate $1.5 trillion in refinances this year, a 51 percent increase over last year.
A Fannie Mae forecast expects mortgage rates to continue to drop throughout the balance of 2020. Rates briefly hit all-time lows prior to the start of the pandemic but have since leveled out. Continuance of low rates is pushing the market closer to “boom” territory – when more than half of all loan originations in the U.S. are for refinances.
Currently, those looking to refinance their existing home loan will find conforming no-point 30-year fixed mortgage rates are averaging 3.375 percent and 15-year rates are near 2.75 percent.
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