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The economic landscape has changed drastically over the past few weeks. The refinance boom, so strong the past 2 years, has begun to taper off. While demand for refinance loans is still evident, demand for home equity loans and new purchase loans is increasing.
Early August 2003 saw mortgage demand fall to its lowest level since the summer of 2002. Refinancing demand has dropped close to 70% since this past May, but demand for new home purchase loans remains strong.
On August 18, 2003, the Mortgage Bankers Association of America reported that builder confidence in the market for new single-family homes surged in August as homebuyers rushed to lock in mortgage rates at current, attractive levels.
According to the online MortgageLoanSearch Network refinancing activity has slowed dramatically. "We're seeing a 65% decrease in refinance loan application requests. It's phasing out across the board" says MortgageLoanSearch editor, Mark Askew.
The MortgageLoanSearch Network consists of financial resouces and content partners providing mortgage rates, industry news, tools and tips to online loan shoppers. Some specialize in providing home refinancing information.
"Data collected over the past four weeks confirms that the mortgage rate climb is slowing — but not stopping — refinance activity", Mark adds.
An average of 70% of all mortgage applications were for home loan refinancing over the past six months. And no wonder, lowering ones rate by 2 points could made the difference in saving thousands of dollars over the life of the loan.
Statics indicate that 29% of americans have not yet refinanced thier homes. This is a concern as some of these are oblivious to the fact that they are needlessly paying thousands of dollars a year on mortgage payments.
While rates are still at attractively low levels home equity loan are lower. Mortgage activity trends indicate consumers are opting for home equity programs in order to take advantage of lower rates.
Now is a good time to take advantage of consumer friendly tools tips and mortgage industry news.
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