Mortgage rates dropped last week pushing them to a new loan. This has resulted in an increase in mortgage applications. These applications are for both new purchases and refinances. Although reducing your loan via refinancing saves money in the long run, there are upfront costs associated with refinancing. This means it normally only makes sense for homeowners who are planning to spend multiple years in the property. Current rates are at their lowest since January of 2018.
- There has been a noticeable surge in the number of applications for mortgages last week compared to this time last year. The increase is at 28.4 percent.
- People trooped en masse to the houses of lenders due to the fact that the rates for 30-year fixed-rate loans fell drastically to 4.06 percent.
- A single change in a percentage point for a mortgage loan can mean hundreds even thousands of dollars if the dollar amount of the mortgage is high.
“As mortgage interest rates dropped to their lowest levels in over a year last week, home owners and buyers raced to submit their refinance and other loan applications before rates start going up again.”