The falling interest rate caused by a combination of the coronavirus and the Fed’s decision to cut the interest rate appears to have a positive effect upon the number of refinance applications. According to the Mortgage Bankers Association, the 26% increase in weekly refinance applications was only overshadowed by the spike of 224% as compared to 2019 applications. 
The average contract interest rate for a 30-year fixed-rate mortgage decreased to 3.57% from 3.73%. This compares with the average rate for the same loan in 2019 of 4.67%, which represents a historic 24% drop in the rate.
According to the Mortgage Bankers Association, this level is the lowest that has been seen in seven years.
Clearly the use of technology platforms is making it easier for clients to make their applications, thus allowing for applications to go through a quicker process. It is volume accelerated by technology, fueled by Fed rate cuts and a strong economic climate, that is driving the spike in applications.
Mortgage applications for home purchases fell by 3% compared to the prior week, yet were 10% higher than they were in 2019.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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