Currently Reading

Mortgage Rates Creep Up, Send Homeowners Running to Refinance


Mortgage Rates Creep Up, Send Homeowners Running to Refinance

January 13, 2021
Couple meeting with broker
Photo: goodluz

Homeowners who have been hesitant to refinance their mortgages are now running as mortgage rates creeped up last week. Going from 2.86% to 2.88% last week, the average contract interest rate for 30-year fixed-rate mortgages increased enough to motivate homeowners to refinance. Mortgage applications to refinance a home loan jumped 20% last week compared to the previous week, reports CNBC. That spike was the highest level of refinancing applications since March and 93% higher than exactly one year ago. Mortgage Bankers Association’s vice president of economic and industry forecasting says the rate uptick is a result of stimulus checks and the promising future of vaccines.

Mortgage applications to purchase a home, which are less sensitive to weekly rate moves, rose 8% for the week and were 10% higher than a year ago. While demand for housing is still strong, the annual comparison was lower than it has been over the past six months, as buyers are faced with a record low supply of homes for sale and fast-rising prices. However, there was a promising sign in the numbers for first-time buyers.

Read More


Related Stories


What the Federal Reserve Chair Says About Current Inflation Rates

Inflation is “notably” up, according to Federal Reserve Chair Jerome H. Powell, but he notes it’s only a temporary spike. Powell told House…


Construction Excluded From New OSHA Standard

NAHB Policy Briefing | NAHB input on OSHA standard to protect workers from COVID-19; real estate values rise

Market Data + Trends

Home Sales Return Strong in May to the Industry's Surprise

In an unexpected turn, home sales came back strong in May after several months of relaxing sales. From April to May, pending home sales increased…


More in Category


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
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.