REFI ACTIVITY: Applications to refinance a mortgage have fallen sharply since mortgage rates started rising last spring. Even though interest rates have slipped back, refi activity remains low compared to earlier activity. For the week ended November 8, refi applications are down about 57% from year ago levels. The Federal Reserve had hoped their policy of keeping long-term interest rates low would allow many homeowners to refinance their existing loans. Lower monthly house payments would free up money that could be spent elsewhere. The strategy worked in previous years, but that source of cash seems to be drying up in the second half of 2013. Source: Vital Signs
Posted on: Fri, 15 Nov 2013 18:44:09 +0000