Lenders and Realtors Loving the Refi Boomby Tim Manni
HSH’s Lender Showcase has seen a tremendous boost in traffic since last week. In the past four days (not including today), the mortgage lenders in the showcase have seen a tremendous increase in sales leads — 75% of which are refinance applications.
“Lenders are beginning to see the light,” said HSH’s Sales Manager Agnes Romlein. “Our lenders are beginning to see significant sales leads once again as a result of their advertising.”
Coupled with the Fed’s announcement last week that they plan to purchase up to $600 billion in debt and mortgage-backed securities from Fannie, Freddie, and Ginnie, as well as the speculation that the Treasury could use significant TARP funds to lower 30-year rates to 4.5%, lenders and realtors across the country are rejoicing.
“NAR [National Association of Realtors] estimates that lowering the mortgage interest rate by 1 to 2 percentage points can result in up to an additional 800,000 home sales. Housing has always led our economy out of downturns and lower interest rates are key to bringing home buyers back to the market,” said Charles McMillan, President of the National Association of Realtors.
According to HSH, yesterday’s daily conforming average came in at 5.54%.
Readers: How low will rates have to go before you consider either purchasing or refinancing?