Homeowners thinking about refinancing existing mortgages and homebuyers in need of financing may reap huge benefits from the decision by the Federal Reserve to slash interest rates earlier this year. The effort to stimulate an economy struggling through the coronavirus pandemic caused interest rates on FHA, jumbo and 15-year fixed-rate loans to plummet to historic lows. MortgageDepot wants to help borrowers take advantage of this incredible opportunity.
Low rates offer savings
Buyers unable to come up with the down payment required to qualify for a mortgage loan usually rely upon FHA mortgages for financing because they do not require a 20% down payment. FHA mortgages now offer buyers another benefit with record-low interest rates.
While rates remained relatively unchanged on 30-year fixed-rate mortgages, borrowers in need of FHA, jumbo and 15-year fixed rate mortgages saw interest rates plummet to historic lows. The potential savings borrowers could realize over the life of a loan resulting in a substantial increase in applications by buyers and homeowners.
Applications to refinance existing mortgages showed a weekly increase of 6% and an annual increase of 88% as compared to last year. Overall demand for financing caused the weekly volume of applications for loans to increase by almost 4% over the previous week.
Strong real estate market combines with low rates for financing
This has been an excellent year for the real estate market. Record-low interest rates should keep buyers active in the housing market while homeowners take advantage of the opportunity to refinance existing mortgages.
The loan officers at MortgageDepot follow the trends in the mortgage and real estate markets to help borrowers obtain financing at favorable terms.
Contact one of our loan consultants to learn more about this program.