Mortgage News

Refinancing Booms, But Can it Last?

Feb 2, 2009 - While new home purchases may be declining, the number of homeowners seeking to refinance their mortgages is skyrocketing, according to new figures from the Mortgage Bankers Association.

The volume of applications filed to refinance increased 15.8% last week compared with the previous week. At the same time, applications for new mortgages dropped a seasonally adjusted 11.2% for the week ended Jan. 30 as opposed to the previous week. Refinancing made up 73.2% of the total applications filed last week, up from 72.8% the week before.

As more and more homeowners seek to refinance out of ARM loans or to simply capitalize on lower rates, new government proposals may make refinancing even more attractive and attainable.

Fannie Mae announced plans this week to loosen rules for homeowners seeking to refinance dropping some credit-score requirements, reducing income documentation standards, and waiving appraisals. The new rules will apply to homeowners with loans that Fannie Mae owns or guarantees. Company executives noted that the new rules would allow borrowers to take advantage of today's lower interest rates and cut through the red tape holding needy homeowners back.

Another potential benefit for homeowners may come from the Stimulus Bill currently making its way through Congress. This week the Senate added tax relief for homebuyers to the $900 billion economic stimulus bill, offering a tax credit of up to $15,000 or 10 percent of a home's purchase price, whichever is less. This tax credit will apply for any home bought as a primary residence, for one year after the stimulus bill is signed into law.

But at a time when refinancing is increasingly necessary for some homeowners, and ideal for others, a setback could come from higher interest rates. This week the average U.S. rate on a 30-year fixed mortgage rose to 5.25%, up from 5.10% last week. The rising rate is due to investor concern that the new stimulus bill and new administration could increase spending. The effect could thwart the ongoing Federal Reserve efforts to ease the credit crunch and cut borrowing costs, and damage the power of these government proposals.

For Further Reading:

Refinance at Today's Low Rates!



Follow the link to continue reading the related articles.

Home equity till empty for many homeowners

Record Low Mortgages and New Programs: Hope for Homeowners

Interest Rates Finally Stay Put

New FHA Program Launches: Details, and How to Apply

More Mortgage Help on the Way?

Loan Modification 101

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

Get the Updated and Improved Mortgage Rates App from

iPad for Mortgage Rates

Refinancing: Getting Started

Refinancing Info and Advice

Refinancing: Selecting a Loan

FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want