Rise in interest rates slow the refinance market

 From where I sit looking at new files being opened, it was clear that the increase in interest rates had a dampening effect on the NJ mortgage market.  So reports the New York Times.

With mortgage rates hitting their highest level in two years, the rush to refinance has slowed to more of a stroll.

As of the end of June, refinancing activity represented 64 percent of all mortgage applications, the lowest volume since May 2011, according to the Mortgage Bankers Association.

 The rise in rates by “better than a point” since early May has effectively killed off a lot of the refinancing business, in what amounts to a “purely an interest-rate-driven decision,” said Keith T. Gumbinger, the vice president of HSH.com, a financial publisher. But getting into a new mortgage still makes sense for some categories of homeowners.

 Who might benefit from the rate increase?

The most obvious candidates are borrowers whose rates are 5.5 percent or higher.

 Another group of potential borrowers are those who found their homes under water value-wise but who've built up equity because of the rise in prices.

Read the full article, Refinancing, Despite a Rate Rise.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

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