Homeowner’s looked to take advantage of low mortgage rates in late August and their attempts to refinance their loan helped raise total mortgage applications by 3.6 percent. Mortgage applications were 18% over numbers seen from a year ago.
As rates have dropped, homeowners have tried to take advantage and lock in low interest rates. According to CNN, turbulence in China caused these lower rates, allowing US homeowners a great opportunity to refinance. Refinancers surged over the week of the 16th, having 7% more applications than the week before – a large shift for an entire country.
The more mortgage activity, the better off the United States Housing Market will be. Widening the market by adding both additional buyers and sellers will help make the market less volatile. Although homebuyer confidence has been fast improving, most of this recent surge was thanks to refinancers. Ideally, lenders will see a consistent growth rate in mortgage applications, with a good mix of both homeowners and homebuyers.