Are All The Refinances Done?
Like all broadcasting economic reporting is done at the macro level. This is because those doing the reporting want to capture as many listeners and readers as possible. Most of the time most of us just nod along to what we’re hearing because what’s being reported doesn’t apply to us so there is no reason to question the story. But when you are “in the market” for a product or service your individual needs are no doubt quite different than the general market place.
Mortgage interest rates rose last summer about 1.25% but it took several months for that to have in impact on the lending world. This lagging effect makes sense because rates rose so quickly and at the time of the increase many people already had their lower rates locked in. Now that the mid-year data for 2014 is rolling out I’m seeing so many news sources make the claim that refinances are over. It’s almost unanimous…and a little late. While lending volume is certainly way down this year, which indeed is partly due to decreased refinance applications, the year-to-date purchase-market data is showing us that housing is not preforming nearly as well as predicted at the beginning of 2014.
This got me thinking that the refinance “hit” has not been as bad as it’s being reported. Especially since mortgage interest rates are lower now than they have been in all year and are about .5% lower than where they were in July, 2013.
If you only listen to the news as background noise you might think that a refinance is not currently available to you. While that may be the case it still begs the question; are you sure? Have you looked at your current loan in comparison to the market or are you relying on the general chatter, that if taken as the gospel truth, may actually be preventing you from improving your current mortgage terms.
Mortgage Loan Myth Buster
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PS – if you’d like more ways to save some dough check out Jeremy’s great post by clicking here.
