It Was a Big Summer for Mortgages!
Showing no signs of slowing, the real estate market had a banner Summer. Posting its biggest three months since the 2008 financial crisis, lenders extended $700 billion in home loans between July and September. In fact, it was the largest quarter in 14 years. According to Realtor.com, “mortgage originations for the full year are on pace to hit their highest level since 2006, the peak of the last housing boom.” The reason for this? Falling mortgage rates.
This momentum is ebbing and flowing slightly, though. Even though lenders are approving record setting mortgages, actual home sales fell 2% nationally in September. Rates fall and buyers apply for a mortgage, but it still takes time to shop for and close on a home. This may be the reason the percentages of homes sold fluctuates.
Along with new mortgage originations, refinancing activity also jumped 75% from August of last year. Homeowners all across the country are benefiting from falling rates. In some instances, homeowners are refinancing for a full percentage point lower than when they originally purchased their home.
Will this last forever?
Well, no. Experts recommend that if you do refinance, sock away some of that extra savings for if and when things downturn. Don’t expect low rates to be common place forever!
For a full look into falling rates, visit Realtor.com’s News and Insights.