Mortgage Refinancing Volume – Up or Down?

Home with key in front.While total mortgage applications saw only a slight increase in July, refinancing activity hit a three-year high, according to an industry trade group.

The Mortgage Bankers Association reported a 2 percent growth in its refinance index for the week ending July 20, bringing it to its highest level since April 2009. Refinancing activity made up more than 81 percent of all mortgage application activity, a slight increase from 80 percent a week earlier.

Additionally, a recent Housing Wire article reports the 30 year fixed rate mortgage with a conforming loan balance held steady at 3.74 percent, its lowest rate in history.

The 15-year fixed rate mortgage average fell to 3.07% from 3.12%, and the average contract interest rate for 5/1 ARMs declined to 2.68% from 2.71%.

With interest rates continuing to fall, its no surprise that refinancing activity has strengthened. I spoke with Shaun Hamman at American Financial Resources and he said that application volume remains very strong even though we just went through a period where rates inched higher for four consecutive weeks. Rates have since reversed course and have moved lower.

While refinancing can be a very beneficial choice for many homeowners, it may not be financially wise for everyone. To see if refinancing is the right choice for you, speak with a qualified mortgage consultant. You can compare current pricing at ForTheBestRate.com.

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