Small Dip in Weekly Mortgage Rates Meets New Housing Data
For a while last week, there were many nervous refinance lenders and loan officers staring at the yield on the 10 Year Treasury. Intra-day, it pushed passed the 4.0 percent level, but closed below that pivotal mark. Many in the industry believe that a true breach of the 4.0 percent yield level could mean rising mortgage refinance rates.
Since the yield held at the key resistance point last week, we have actually had some nice downward action by almost one-quarter percentage point. Mortgage refinance rates have dipped a bit in movement with the yield as anticipated.
On a more longer-range mortgage related outlook, some key housing data was released today. On the surface, the numbers look great, but a deeper read into the numbers does not fare well for home prices in the near term.
New housing starts in May jumped by 17.2 percent. That nice number is still 45.2 percent below the housing starts at the same time last year. Another seemingly good bit of news was reported that applications for building permits jumped by 4 percent in May, and is usually a good sign of future housing activity.
In more normal times, these would be welcome signs of increased economic activity, but with the huge housing supply overhang already in place and with more supply expected due to heightened foreclosure rates, these numbers are not particularly helpful to a housing market already plagued with depressed prices.
In reality, builders are still being very cautious as home supply continues to build. With foreclosures and other distressed properties for sale at deep discounts, builders often can't compete. Rather than launching new developments, they are waiting for signs of a broader recovery.
This latest news is all the more reason for people considering a home refinance to react quickly to current mortgage refinance rates if their view is long-term, if they need to consolidate debt, or switch to a low fixed rate from a current variable rate home loan.
Why jump now? If home values continue to descend, it could very well knock a refinancing homeowner from reaping a current significant financial benefit, to a future non-beneficial or even non-qualified home refinance scenario.
Couple that with the fact that the future risk to the upside for mortgage refinance rates is much greater than a move to the downside at current levels and I think you get the point.
The key is to speak with a lender that can guide you through a thorough pre-qualification and give you the bottom-line financial options for your current refinancing scenario. It very well could be that your refinancing plans should in fact wait, but if there is true pre-qualified and significant benefit waiting on the table for your now, you just might want to jump into the pool.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Since the yield held at the key resistance point last week, we have actually had some nice downward action by almost one-quarter percentage point. Mortgage refinance rates have dipped a bit in movement with the yield as anticipated.
On a more longer-range mortgage related outlook, some key housing data was released today. On the surface, the numbers look great, but a deeper read into the numbers does not fare well for home prices in the near term.
New housing starts in May jumped by 17.2 percent. That nice number is still 45.2 percent below the housing starts at the same time last year. Another seemingly good bit of news was reported that applications for building permits jumped by 4 percent in May, and is usually a good sign of future housing activity.
In more normal times, these would be welcome signs of increased economic activity, but with the huge housing supply overhang already in place and with more supply expected due to heightened foreclosure rates, these numbers are not particularly helpful to a housing market already plagued with depressed prices.
In reality, builders are still being very cautious as home supply continues to build. With foreclosures and other distressed properties for sale at deep discounts, builders often can't compete. Rather than launching new developments, they are waiting for signs of a broader recovery.
This latest news is all the more reason for people considering a home refinance to react quickly to current mortgage refinance rates if their view is long-term, if they need to consolidate debt, or switch to a low fixed rate from a current variable rate home loan.
Why jump now? If home values continue to descend, it could very well knock a refinancing homeowner from reaping a current significant financial benefit, to a future non-beneficial or even non-qualified home refinance scenario.
Couple that with the fact that the future risk to the upside for mortgage refinance rates is much greater than a move to the downside at current levels and I think you get the point.
The key is to speak with a lender that can guide you through a thorough pre-qualification and give you the bottom-line financial options for your current refinancing scenario. It very well could be that your refinancing plans should in fact wait, but if there is true pre-qualified and significant benefit waiting on the table for your now, you just might want to jump into the pool.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, fha refinance, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
11:09 AM
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