Refi Activity Jumps on Fed Move

Mortgage refinance applications soared last week according to the MBA on the heels of the Fed rate cut.  With all the volatility in the marketplace however; many would-be refianciers may be disappointed at the constantly changing rate moves in the market.  When a loan officer tells you to lock your rate these days, I would generally take their advice.  If you have a rate that you like, that makes sense for you, take it off the table by locking it in.

From the Market Watch article on increased mortgage refinancing activity last week:

 Reflecting a surge in refinancing activity, the volume of mortgage applications rose a seasonally adjusted 48.1% in the week ended March 21 from the prior week, the Mortgage Bankers Association said Wednesday.

Applications filed to refinance existing mortgages increased 82.2% on a week-to-week basis, according to the MBA’s weekly survey. Filings for mortgages to buy homes also rose, up a seasonally adjusted 10.6%.

After the Federal Reserve moved last week to help stabilize the mortgage-backed securities market, “we saw an immediate impact with a drop in mortgage rates,” said Jay Brinkmann, MBA’s vice president of research and economics, in a news release. He noted “a drop in the 30-year fixed rate of at least a quarter of a point.”
Specifically, the 30-year fixed-rate mortgage averaged 5.74% last week, down from 5.98% a week earlier, according to the MBA survey.

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