Thinking of Refinancing?

Santa Barbara Coastline by local artist Chris Potter

Homeowners hoping to refinance are advised to act soon as the Federal Reserve is likely to call for an interest-rate increase soon.  ATTOM Data Solutions says that there were a total of 876,633 refinance originations in the third quarter, a year-over-year increase of 16 percent. In a statement accompanying the report, company Senior Vice President Daren Blomquist said that the prospect of rising interest rates in advance of the election may have prompted some homeowners to lock in rates while they are still low by historical standards.

MORTGAGE RATES AT YEARLY HIGH TWO WEEKS RUNNING

Mortgage rates were above 4 percent again last week, which may lead to a cooling in the aforementioned flurry of refinancing.

The latest numbers from Freddie Mac put 30-year, fixed-rate mortgages at 4.08 percent for the week ended Dec. 1, the fifth consecutive week of increases and a 2016 high. Fifteen-year, fixed-rate mortgages also rose, to 3.34 percent. In a statement, Freddie Mac Chief Economist Sean Becketti noted that the rising rates have an immediate impact on refinancing trends.

“With mortgage rates at the highest we’ve seen this year, borrowers are now backpedaling on refinance opportunities,” he said. “The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity down 16 percent week over week.”