Mortgage refinances set to reach 17-year high

Mortgage refinances set to reach 17-year high

Mortgage refinances set to reach 17-year high
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.

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.