MORTGAGE REFINANCES JUMP 21 PERCENT ON NEAR RECORD LOW RATES

MORTGAGE REFINANCES JUMP 21 PERCENT ON NEAR RECORD LOW RATESSource: CNBC

Applications to refinance home loans jumped 21 percent for the week, and they are now 113.5 percent higher compared to one year ago, when rates were about three quarters of a percentage point higher, according to the Mortgage Bankers Association (MBA). Clearly, the Brexit bonus to U.S. homeowners is well underway, as the drop in mortgage interest rates is putting more money in the pockets of owners. Application volume is now 66 percent higher than one year ago. Mike Fratantoni, Chief Economist for the MBA, commented, “Mortgage rates have been low for years, but the impact of Brexit has brought us close to record lows once again, with jumbo rates already at their lowest levels, giving more borrowers a larger incentive to refinance.”

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