Real Estate News And Analytics Mortgage Refinances Are Up as Rates Drop by Sylvia Shalhout May 23, 2019May 23, 2019 Sylvia Shalhout May 23, 2019May 23, 2019 Since the beginning of 2019, mortgage rates have dropped despite early predictions that they would continue to rise this year. As a result, mortgage refinances have greatly increased. The Rise of Mortgage Refinances With rates for a 30-year fixed mortgage rate (with conforming loan balances and a 20% down payment) dropping from 4.40% to 4.33% for the fourth consecutive week, it’s no wonder that property owners are taking advantage of the situation. In fact, mortgage rates are currently the lowest they have been since January 2018. And because the volume of mortgage refinances is so sensitive to changes in rates, they jumped 8% which is the largest increase in the past month. The total volume of mortgage applications rose by 2.4% last week, compared to the previous week. This was an increase of 15% from the same time last year, according to the Mortgage Bankers Association’s (MBA) seasonally adjusted index. Even though mortgage refinances made up a good portion of these applications, those for the purchase of a new property actually fell 2%. However, compared to the same time last year, they are up 7%. This is reflected in the fact that property sales have been lower than expected for the spring real estate market. NAR reports that April home sales were down 4% YOY. Related: Why Spring Is the Best Time of Year to Buy a House for Investment Joel Kan, the Associate Vice President of Economic and Industry Forecasting at MBA, had this to say about the fall in April sales: We’re keeping a close eye on whether there may be some adverse effects of the ongoing global trade disputes on overall demand. Some potential homebuyers may be delaying their home search until there’s more certainty. What This Means for Real Estate Investors There are two key takeaways for real estate investors. For one, investors who own rental property may take this as a sign that it’s a good time to refinance. This will allow for better mortgage payments and more cash flow. You may even be able to buy another investment property using this strategy. Learn More: How to Refinance Investment Property to Buy Another The second takeaway has to do with the drop in home sales. While perhaps not apparent in major cities that are seller’s markets all year round, competition may be less heated as we move into the summer season. It may be the best time to start looking for an investment property to try and get a good real estate deal before things inevitably heat up again. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. It can also mean that as first-time homebuyers sit this buying season out, demand for rental properties can rise in certain locations. Of course, these are general real estate trends. Be sure to study your local housing market to ensure it’s the best time to invest in real estate or refinance your rental property. Sign Up to Mashvisor Now to stay up to date on the US housing market. Start Your Investment Property Search! START FREE TRIAL Mortgage 0 FacebookTwitterGoogle +PinterestLinkedin Sylvia Shalhout Sylvia was the Content Marketing Manager at Mashvisor. As a real estate writer, she has been covering topics for the beginner and advanced real estate investor, helping them make smarter decisions as well as real estate agents looking to take their business to the next level. Related Posts Zombie Foreclosures Up by 3% from Q1 to Q2 2022 New Data on Existing Home Sales Shows a Rise Clark County to Implement Nevada Short-Term Rental Law July 1: What It Means for Airbnb Las Vegas Bidding Wars for US Homes Drop to 10-Year Low Airbnb Occupancy Rate Up 13% as Market Recovers Mortgage Rates Watch: May 2022 Mansion Tax Causes NYC Real Estate Sales to Drop Hurricane Dorian Threatens $1.7 Trillion of Residential Real Estate New Amazon-Realogy Partnership Announced This Week New Massachusetts Airbnb Regulations Set to Take Effect in 2019 Invest in Real Estate Amid Stock Market Plunges New Airbnb Regulations Might Be Coming to the Toledo Real Estate Market Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.