Mortgage Refinance Applications Surge
From California to New York, Savvy Property Investors Are Using Refinance Mortgages To Get What They Need
(PRWEB) June 17, 2005 -- Dictionaries define it accurately when they define
the word surge:
Surge: (1) to rise suddenly to a higher amount or value
(the real estate market surged to a record high) (2) to improve one's
performance suddenly, especially in bettering one's standing in a competition
(the local property market is currently surging).
From coast to coast,
this is exactly what is happening to the American property market, it is
surging. While loan applications remain unabated, the most popular application
being filed is the one for refinancing. Taking advantage of historically low
interest rates, and a feverish climate of lender's competition for clients,
Americans are acquiring real estate like never before.
The Mortgage
Bankers Association has just recently issued a report specifically targeting
this phenomenon. They report that the current applications index rose 6.5
percent from the week of June 3rd's level of 709.1, to 755.5 this week. What
with the 30-year interest rate averaging 5.62 percent, it is no wonder this
report did not show any other results. While refinancing remains as it does
(41.2 percent of all applicants as of the end of May this year), applications
specifically for adjustable rate mortgages (ARMS) has dropped off a bit from
33.3 to 31. 7 percent.
Due to climbing property values, many applicants
are seeking to draw on the now higher levels of equity in their homes, by
refinancing with home equity loans (HELOCs). However, all look to reap the
future rewards of the savings that will be derived from the low rates currently
offered across the board. Currently, this is the highest level for mortgage
refinance applications since February of this year.
Home sales have also
been encouraged by improvements in the labor market. With more people working,
the economy is stimulated, thereby resulting in real estate sales falling in
step with these trends. The number of new homes being built has also increased
to such levels, that in many parts of the country people are finding it hard to
locate the raw materials they need for new home construction. This has caused
many home owners to reconsider new construction as an option. Instead, many are
now choosing to refinance their current mortgage and stay put for a few more
years so that they can bank the money they are saving from refinancing at a
lower rate, and to establish more home equity. By choosing this path, they know
they will have more to contribute towards their new home's construction when its
time to build.
With the continuous down trend in interest rates, it is
very unlikely that the real estate market will be cooling down for any time in
the near future. Smart property investors are refinancing and putting the
savings back into their bank accounts rather than making their lenders'
wealthier.
For more insightful information on mortgage loan refinancing
please visit www.mortgageloanrequest.com. The site also offers a free loan
shopping service at https://www.mortgageloanrequest.com/prequalify/refinance-prequalify.html
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Source : http://www.prweb.com/releases/2005/6/prweb251667.htm