{"id":2723,"date":"2022-04-28T11:00:00","date_gmt":"2022-04-28T15:00:00","guid":{"rendered":"https:\/\/politicalbourbon.com\/en\/?p=2723"},"modified":"2022-04-28T11:15:54","modified_gmt":"2022-04-28T15:15:54","slug":"mortgage-refinance-demand-drops-by-70","status":"publish","type":"post","link":"https:\/\/politicalbourbon.com\/en\/2022\/04\/28\/mortgage-refinance-demand-drops-by-70\/","title":{"rendered":"Mortgage Refinance Demand Drops by 70%"},"content":{"rendered":"\n

According to several reports mortgage refinancing demand has dropped by 70% compared to 2021 levels. Total mortgage application volume fell 8.3% last week according to the Mortgage Bankers Association. <\/p>\n\n\n\n

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It appears that the Fed’s decision to increase interest rates have affected home buyers which is starting to have a ripple affect causing mortgage applications to drop. <\/p>\n\n\n\n

The median\u00a0home price<\/em>\u00a0in the United States is $374,900. Last year 30yr note a P&I loan would cost $1,578.57 per month at 2.99%. Today that same loan now costs 4.99% or more costing $2,010.25. As you can see from the example a 2 point interest increase can significantly reduce consumer buying power.<\/p>\n\n\n\n

To help alleviate some of the pain banks are now starting to offer consumers adjustable-rate mortgages. The average rate today on a 5-year ARM is 4.28%. ARM loans now equate to about 9% of all loan applications processed last week. <\/p>\n\n\n\n

With housing costs hitting all time highs and mortgage rates now climbing one has to expect that the housing market is starting to cool and could potentially give us a repeat of the 2008 real estate meltdown.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

According to several reports mortgage refinancing demand has dropped by 70% compared to 2021 levels. Total mortgage application volume fell 8.3% last week according to the Mortgage Bankers Association. It appears that the Fed’s decision to increase interest rates have affected home buyers which is starting to have a ripple affect causing mortgage applications to […]<\/p>\n","protected":false},"author":1,"featured_media":2725,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3122],"tags":[3610,3612,3607,3609,3608,3611],"class_list":{"0":"post-2723","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"tag-arm","9":"tag-housing-market-crash","10":"tag-mortgage","11":"tag-mortgage-rate-increase","12":"tag-rate","13":"tag-refinance"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/posts\/2723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/comments?post=2723"}],"version-history":[{"count":0,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/posts\/2723\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/media\/2725"}],"wp:attachment":[{"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/media?parent=2723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/categories?post=2723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/politicalbourbon.com\/en\/wp-json\/wp\/v2\/tags?post=2723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}