Interesting things are happening once the drop in mortgage rates went down yet again in the past week. Because of the dropping prices, more homeowners are going to their lenders in order to save and even get some cash back from their loans, while decreasing their monthly payments. The application for mortgages went up over 21 percent last week compared to the week before, which means that the volume of mortgage rates is more than 80 percent higher than it was in 2018.
Why did this happen? The reason for the increase was due to the sharp dip in mortgage rates. Most mortgages for a 30 year fixed rate were about 4 percent in 2016, and now they dropped down to 3.93 percent, for most loans with a twenty percent down payment. That ended up causing millennials and other home owners to start going refinance-crazy and about 37 percent of homeowners ended up refinancing their homes, which is the highest level since July of 2016. However, compared to a year ago, refinancing applications have increased up to a hundred and sixty-nine percent.
Last week in August of 2019, numerous homeowners continued to respond to the extremely low interest rates and what are their reasons? The answer is that many people are worried about a trade war, economical concerns, and even more, causing the U.S. Treasury and other worldly rates to lower.
Now that the rising media is buzzing over it, the lower rates ended up not helping people want to buy homes as much as companies expected or hoped. Instead, mortgage applications only went up two percent more than last year, because the price of homes is still extremely high.