Refinance volume expected to break 17-year record

Refinance volume expected to break 17-year record

Refinance volume expected to break 17-year record
With mortgage rates remaining near all-time lows, so many people are refinancing their homes that the housing market is expected to see over $2 trillion in refinances this year, second only to the all-time high set in 2003. This latest information comes from the Mortgage Bankers Association.

Black Knight, a mortgage data company reports that currently, there are nearly 20 million homeowners in the U.S. that could benefit from a refinance by locking in a lower interest rate.

But refinancing may get a little more expensive. Beginning today, December 1, Fannie Mae and Freddie Mac, which guarantee roughly half of the country’s mortgages will be charging lenders a “adverse market fee” on refinances. The new fee will require lenders to pay an extra 0.5 percent of the loan amount as a one-time charge. On average, this amounts to $1,400 on a median prices home. Many lenders are expected to pass this cost on to borrowers.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 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