Rate Drop Causes Mortgage Application Surge

Mortgage lenders are working overtime to process the 26.8% surge in applications as potential and current homeowners take advantage of the lowest mortgage rates in two years. Refinances increased 97% from last year and represented almost half of applications.

According to Quicken Loans, interest rates for today, June 13, are:

15-Year Fixed                                   3.5%

30-Year Fixed                                  4.125%

5-Year Arm                                      3.75%

30-Year Fixed FHA                        3.625

30-Year Fixed VA                           3.625

You can find daily updates on their website. According to the Mortgage Banker’s Association AVP of Economic and Industry Forecasting, the drop in rates can be attributed to the trade wars with China and Mexico. This sweetens the pot for potential buyers, as they are able to lock in at rates that experts were uncertain would ever again be available, while at the same time making a trade-war proof investment. With tariffs increasing the prices of new builds, resales are experiencing a distinct advantage as value holds steady.

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