Mortgage refinances are flying high.
With the most recent Mortgage Bankers Association weekly mortgage applications survey showing a 15 percent increase for the week ending March 2 in mortgage refinances week-over-week and their share at 46.1 percent of total applications, the tax-filing season remains a good time to trade up to a lower mortgage rate.
“It?s absolutely a great time to refinance for a couple of reasons,” said Municipal Employees Credit Union marketing Vice President Gary Martin, explaining that in the spring home sales and interest rates will rise.
“For one thing, rates are excellent right now ? and a lot of people have seen appreciation in their property values.” Martin added. “So they have equity in their property, and if they have a higher rate or an adjustable rate or some other type of exotic mortgage, it?s a good time to put it into something that?s more standard ? and possibly consolidating debt.”
Likely due to a continuing housing market slump and abidingly low inflation and interest rates ? the MBA gauged the period?s average 30-year fixed rate at 6.04 percent and the 15-year fixed rate at 5.73 percent ? the pre-April 15 winter doldrums period has historically been a good time for mortgage refinancing in preparation for the taxman who cometh.
Martin said most of MECU?s current mortgage production was in refinancing.
This year, however, even the seasonally adjusted overall mortgage loan application volume was up 7.3 percent week-over-week, according to MBA figures, and showed a 1.7 percent increase month-over-month.
The MBA?s refinance index is not seasonally adjusted.
“We did see a drop in rates in the past month,” Martin said of mortgage rates, noting MECU?s current 30-year fixed rate is 6.0 percent. “And there?s the perception that they?ve gone up. But actually even at their recent worst, rates are still at notable lows.”
But refinancing remains at seasonally high rates at Baltimore-based Provident Bank, said Communications Director Vicki Cox. “We?re seeing what we normally see in our refinancing business,” Cox said, noting that Provident had a 70-30 refinance to purchase ratio in January and February, “which is historically high.”
