The Masked Tulip Posted November 28, 2016 Share Posted November 28, 2016 Quote The fast rise in rates has spurred homeowners to pull back from refinancing their mortgages. Applications dropped 3% in the week ended Nov. 18 from the prior one, the seventh consecutive weekly decline, and the second since Election Day, according to data released Wednesday by the Mortgage Bankers Association. The MBA estimates refinances will fall 46% next year, to $484 billion, which will hurt Americans’ ability to free up cash by reducing the cost of their monthly mortgages. The fall in refinances also will hit an important area of consumer-loan growth for banks. To slow the possible damage, banks already are pitching riskier loans that come with adjustable interest rates or allow borrowers to pull more equity out of their homes. “The increase in rate has shocked consumers…I didn’t expect it either,” said Dave Norris, chief revenue officer at LoanDepot, the 10th largest mortgage lender in the U.S. by loan volume. This month’s rate increase has eliminated a large share of borrowers for whom refinancing would make financial sense. Before the election, 70% of all borrowers with a 30-year fixed-rate conforming mortgage stood to incur at least a half a percentage point in savings by refinancing. Now only 35% of borrowers are eligible for such savings, said Walter Schmidt, who tracks mortgage-backed securities at FTN Financial. http://www.zerohedge.com/news/2016-11-27/cash-out-mortgage-refis-expected-crash-rates-surge Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted November 28, 2016 Share Posted November 28, 2016 4 hours ago, The Masked Tulip said: To slow the possible damage, banks already are pitching riskier loans that come with adjustable interest rates or allow borrowers to pull more equity out of their homes. http://www.zerohedge.com/news/2016-11-27/cash-out-mortgage-refis-expected-crash-rates-surge FFS - here we go again...... Quote Link to comment Share on other sites More sharing options...
canbuywontbuy Posted November 28, 2016 Share Posted November 28, 2016 (edited) it's all turning to dogshit again - but without the base rate to play with. Edited November 28, 2016 by canbuywontbuy Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 28, 2016 Share Posted November 28, 2016 1 hour ago, dpg50000 said: FFS - here we go again...... Unregulated bankers doing what unregulated bankers do. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 28, 2016 Share Posted November 28, 2016 And for my next trick..... Quote Link to comment Share on other sites More sharing options...
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