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Refinance Demand Increases As Mortgage Rates Remain Near Record Lows(August 29, 2011)
Wilmington, NC (PRWEB) August 29, 2011
Mortgage rates remained near the historical low point this week, resulting in a great deal of refinance activity across the US, according to mortgage rate research website, ForTheBestRate.com. Though interest rates inched up slightly over the previous week, homeowner interest in refinancing did not slow down, with refinance inquiries on ForTheBestRate.com up 77% over the previous month.
Freddie Mac, a government sponsored enterprise that purchases residential mortgage loans in the secondary market, corroborated the minor increase in mortgage rates in their weekly survey released Thursday, August 25th. The survey showed that the average rate for 30 year fixed mortgages rose to 4.22% (0.7% points) from 4.15% (0.7% points), and that 15 year fixed mortgages were also up somewhat to 3.44% (0.6% points) after averaging 3.36% (0.6% points) the week before.
5 year ARM rates however inched lower dropping to 3.07% (0.5% points), down from 3.08 (0.5% points) the week of August 18th.
"There are a lot of people hoping to take advantage of pricing this low," said Nat Criss, Managing Partner of ForTheBestRate.com. "Mortgage banks and lenders are starting to feel the effects of this demand. I spoke to one mortgage company this week and they have locked three times the number of loans this month compared to their typical volume of business. If a homeowner is interested in a refinance now is the time to get their loan in the queue."
American Financial Resources, a National mortgage lender offering conventional financing as well as low and no money down mortgage solutions such as USDA rural housing loans, FHA mortgages, and manufactured home financing, is one of those lenders dealing with the influx of applications. Shaun Hamman, VP of Residential Lending at AFR, commented, "We are working hard to accommodate as many refinance borrowers as possible, as well as work with those in need of purchase financing. These low rates can mean significant savings for homeowners, which is especially helpful in the current economic environment. We welcome the increased business, and are excited to see this great pricing sticking around for the moment."
In addition to homeowners hoping to refinance the mortgage for their primary residences, real estate investors are looking to cash in on the low rates and lower the interest they'll need to pay on investment property loans.
Below is a snapshot of mortgage rates for a variety of products listed on ForTheBestRate.com on 8/25/2011. Rates are subject to change. Please visit the site to view the criteria used in the survey.
30 Year Mortgage Rates (0 Points)
AimLoan 4.125% Note Rate 4.207% APR $1,950 Fees in APR
Amerisave 4.375% Note Rate 4.460% APR $1,995 Fees in APR
20 Year Mortgage Rates (0 Points)
Gateway Bank Mortgage 3.875% Note Rate 3.948% APR $1275 Fees in APR
AimLoan 3.875% Note Rate 3.987% APR $1,950 Fees in APR
15 Year Mortgage Rates (0 Points)
Amerisave - 3.375% Note Rate - 3.521% APR - $1,995 Fees in APR
AES Lending - 3.375% Note Rate - 3.426% APR - $700 Fees in APR
10 Year Mortgage Rates (0 Points)
Gateway Bank Mortgage - 3.250% Note Rate - 3.342% APR - $875 Fees in APR
AES Lending - 3.375% Note Rate - 3.423% APR - $450 Fees in APR
ForTheBestRate.com is a website that offers information regarding mortgages, insurance, and personal finance. ForTheBestRate.com is owned by CMG Equities, LLC based in Wilmington, North Carolina.
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