This ARTICLE On Mortgage Refinance Increase 15% Due To Mortgage Rate Drop Was PUBLISHED On August 12th, 2019
Mortgage Rates hit a 36-month low.
- On the flipside, Mortgage Rates hit the highest levels in 2018 since the 2008 Great Recession And Housing Crash
- The Federal Reserve Board (The Fed) increased interest rates four times in 2018
- Many borrowers who closed on their home loans in 2018 got hit with the highest rates since the 2008 Real Estate Market Crash
- Since the beginning of the year, mortgage rates have been dropping to its lowest levels in three-years
- This is mainly due to the Federal Reserve Board taking an opposite stance of its 2018 rate increases
- The Federal Reserve Board recently cut interest rates by 25 basis points
- This interest rate cut by the Feds was the first time since the 2008 Recession
- Mortgage Refinance Increase by more than 15% due to the consistent mortgage rate drop
In this article, we will cover and discuss Mortgage Refinance Increase Numbers due to mortgage rate drop.
Low Rates Is The Cause Of Mortgage Refinance Increase
Michael Gracz, the national sales manager at Gustan Cho Associates, is swamped with refinance borrowers.
FHA And VA Streamline Refinances
Anyone borrower who closed their home loans last year at 5.0% or higher can take advantage of today’s low mortgage rates by refinancing. Borrowers with a current FHA and/or VA Loan can take advantage of the FHA and VA Streamline Refinance Program. There is no appraisal required and no income documentation on streamlines. Most streamlines can be closed in two to three weeks.
How About Purchases
Purchase business was not affected by any increases due to decreasing mortgage rates. Home inventory remains low but demand remains strong. Both HUD and the Federal Housing Finance Agency (FHFA) have increased FHA and Conventional Loan Limits for three years in a row due to rising home prices. 2019 FHA Loan Limits is capped at $314,827. 2019 Conforming Loan Limits is now capped at $484,350. High-Cost Areas like many counties in California have higher FHA and Conforming Loan Limits. The Department of Veterans Affairs (The VA) recently lifted VA Loan Limits. There are no maximum loan limits on VA Loans.
Home prices are continuing to climb despite high home prices. The inventory of homes still remain low in many states. For more information about the content of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.
