Houston Refinance: Refinance Application Drops While Purchase Rises

Houston Refinance: Refinance Application Drops While Purchase Rises

Contact me, Frank Zhu, and let me help you find the lowest rate in Texas when it comes to mortgage. I’m bilingual in English and Chinese. Give me a call at 512-919-0154 for your mortgage needs.

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Frank Zhu:  512-919-0154

frank@mylendingplace.com

In the recently few weeks, the market has been so volatile that the rates were updating hourly. Despite all that, the rates have become worst than a months ago by at least 1 point. The refinance market has been dried up but the recent rate hike really took taken it aback even further. The Refinance Index decreased 1.4 percent from the previous week. This is the fourth weekly decrease for the Refinance Index which reached its lowest level since June 2010.  The four week moving  is down 10.9 percent for the Refinance Index.

On the other hand, the purchase application has been increasing. I wonder if it is people buying home for themselves or investors taking advantage of the buyer’s market and low interest rate. Another reason maybe that the purchase demand is a factor of mortgage interest deductibility possibly going away or maybe it’s related to increasing borrowing costs.

The rates will hopefully get better in the future. Right now is a good time to think about the goals for your refinance. Ask yourself these questions:

- How much do I want to save per month?

- What is the rate I will need to get that saving?

- Would I need to pay anything at closing?

When you have a goal in mind, it can help you focus on what exactly you are trying to do. Instead you chasing for the lowest rate possible.

Today’s market rate with no points are:

30 years fixed – 4.75% // APR – 4.816%

15 years fixed – 4.25% // APR – 4.312%

We also offer “no cost” refinance. Contact me, Frank Zhu, and let me help you find the lowest rate in Texas when it comes to your mortgage. I’m bilingual in English and Chinese. Give me a call at 512-919-0154 for your mortgage needs.

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