Mortgage rates plunged the last week on increased fears of an extended trade war and China’s exit from buying US agricultural products. The rates are the lowest they have been in years. Mortgage refinance applications rose 12% last week and up 116% from 1 year ago. The stunning drop in rates has many clients refinancing looking to save money, eliminate private mortgage insurance, take out cash or purchase a bigger home for less money.
“The Federal Reserve cut rates as expected last week, but the bigger influence on the financial markets was the development that a trade war with China has started. The result was a sharp drop in mortgage rates, which will likely draw many refinance borrowers into the market in the coming weeks,” said Mike Fratantoni, MBA senior vice president and chief economist. “The 30-year fixed rate mortgage fell to its lowest level since November 2016. We fully expect that refinance volume will jump even higher this week given the further drop in rates.”
“It doesn’t look like trade is going to get any better, so I think we’re in for a very rough ride,” says former Iowa Lt. Gov. Patty Judge.
Where this ends nobody knows – what we do know is rates are extremely low right now and the lowest in a decade. We offer the most competitive mortgage rates on purchase, refinance, and cash out loans. We also offer bank statement programs, hard money and investor loan programs not available through traditional banking models.
For more information about our Interest Rates & Mortgage Loans, their benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page.
Written By: Steve Head / Top Producing Loan Officer Servicing the entire State of Texas