Currently Reading

How the Refinancing Boom May Hurt the Spring Buying Season

Advertisement

How the Refinancing Boom May Hurt the Spring Buying Season


March 20, 2020
Lenders refinancing paperwork
By stokkete

The refinancing boom may be contributing to the new home sales bust. Homeowners rushing to refinance with the low mortgage rates are overwhelming lenders, causing delays in processing new mortgage applications and sending out appraisers to assess houses. In an effort to slow down the refinancing bonanza, lenders pushed the mortgage rates up from 3.13 percent to 4.13 percent, even as the Federal Reserve slashed federal interest rates to zero. These setbacks mixed with overall buyer concerns and lender caution may slow down the already stalling new home market. But experts say that lenders still prioritize buyers as they are more reliable customers. Lenders will continue to process new mortgage applicationsjust at a much slower pace.

As homeowners raced to refinance their home loans amid record-low mortgage rates recently, they overwhelmed lenders by their sheer numbers—triggering repercussions for the shoppers gearing up for the spring home-buying season.

"If a buyer finds a house today, they’re going to need a longer amount of time to close," says Tucson, AZ–based mortgage broker Rocke Andrews of Lending Arizona. He's also the president of the National Association of Mortgage Brokers, a national trade group. "Things are taking a little bit longer because of the large number of refinances going through the system."

Read More

 

Related Stories

Economics

As Mortgage Rates Lower, Millions of Americans Can Save Big

With mortgage rates down to a new low, a record 19.4 million Americans could save hundreds per month. The average interest rate for Freddie Mac’s…

Financing

Disaster Recovery through Job Order Contracting

When disaster strikes your community, job order contracting is a reliable, efficient way to fund rebuilding efforts.

Market Data + Trends

Mortgage Demand Shrinks to 6-Month Low

Record low mortgage rates are proving to be unhelpful as homebuyer demand falls for the sixth time in seven weeks. Mortgage application volume…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.