Is the recent rate hike temporary or is it a trend that will continue? I’m Joel Greene and this is the Broker Banker mortgage insider.
During the past month, mortgage rates have risen sharply, moving from about 3.40 percent to about 3.90 percent, according to Bankrate.
Although average U.S. rates on fixed mortgages jumped to their highest levels in a year, rates remain low by historical standards.
Is this is a short term spike or a trend that we need to concern ourselves with moving forward? Let us know what you think.
Is the refi party over?
It’s certainly winding down, according to the Mortgage Bankers Association, which reported a decline in mortgage applications.
According to MBA’s vice president of research and economics- Mike Fratantoni, “This refinancing boom that has been going since early 2009 has allowed the best credit borrowers to refinance a couple of times. As rates tick above those levels, that group of borrowers is no longer going to have an incentive to refinance.”
But not everyone agrees. Bob Walters, chief economist at Quicken Loans thinks the Fed will hold strong to make sure the economy is on solid footing through 2013, but going beyond that, it starts to get a little fuzzy. The market’s starting to price some of that uncertainty in.
Are you seeing a drop in your refinance applications? How is your production being affected?
Let us know what topics you would like discussed or if you would like to be featured on the Broker Banker mortgage insider show. Email us your questions and make sure to like us on Facebook. http://facebook.com/brokerbanker
I’m Joel Greene and thank you for watching.