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Mortgage refinance applications soared last week according to the MBA on the heels of the Fed rate cut. With all the volatility in the marketplace however; many would-be refianciers may be disappointed at the constantly changing rate moves in the market. When a loan officer tells you to lock your rate these days, I would generally take their advice. If you have a rate that you like, that makes sense for you, take it off the table by locking it in.
From the Market Watch article on increased mortgage refinancing activity last week:
Reflecting a surge in refinancing activity, the volume of mortgage applications rose a seasonally adjusted 48.1% in the week ended March 21 from the prior week, the Mortgage Bankers Association said Wednesday.Applications filed to refinance existing mortgages increased 82.2% on a week-to-week basis, according to the MBA’s weekly survey. Filings for mortgages to buy homes also rose, up a seasonally adjusted 10.6%.
After the Federal Reserve moved last week to help stabilize the mortgage-backed securities market, “we saw an immediate impact with a drop in mortgage rates,” said Jay Brinkmann, MBA’s vice president of research and economics, in a news release. He noted “a drop in the 30-year fixed rate of at least a quarter of a point.”
Specifically, the 30-year fixed-rate mortgage averaged 5.74% last week, down from 5.98% a week earlier, according to the MBA survey.
