Refinance Demand Up as Mortgage Interest Rates Maintain Low Levels, by Rosemary Rugnetta,

September 2, 2010 ( – As mortgage interest rates continue to maintain low levels, refinance demand continues to increase across the nation. According to the Mortgage Banker’s Association, refinances have reached a 15 month high, the highest point since May of 2009. Rates are at the lowest point than any other time since Freddie Mac began keeping track in 1971. Mortgage applications rose for the fourth straight week with refinances accounting for the bulk of the demand. This is due to mortgage interest rates that continue to remain low with the 30 year fixed rate at 4.125% and the 15 years fixed rate at 3.625%.

The current refinance demand is not surprising considering the record low mortgage rates that have continued for the past several weeks. After a slow start, these low mortgage rates are finally spurring home owner interest. Unfortunately, not all home owners can refinance with these historic rates. Those who are underwater due to the depressed housing market and those whose credit has been compromised will not be able to take advantage of the market’s record low interest rates. On the other hand, for others, especially those who have refinanced within the past two years, it is a great time to do it again. In addition, those home owners who currently have adjustable rate mortgages that are about to reset, could benefit from refinancing at this time into a fixed rate mortgage.

The demand for refinances, which has continued to increase each week, could also be a positive sign for the weak economy. The current low mortgage interest rates have made it possible for home owners to refinance into a better interest rate loan or a shorter length loan. Many with higher interest 30 year loans are finding that, at today’s rates, it is in their best interest to refinance into a 15 year mortgage which is, in many circumstances, cheaper. By putting extra cash in consumers hands, they are able to pay off outstanding debts, money can be saved or just put back into the economy through spending. Although it is not certain if this refinance boom will do anything to stimulate the economy, this just might be the boost that the sluggish economy is in need of.

It is anyone’s guess at which way mortgage rates will go from here. If mortgage interest rates maintain these low levels or drop even lower, refinance demand should go up with more home owners deciding to refinance during the fall months just in time for the Holiday season. In the meantime, home owners probably should not wait for rates to go much lower since anything can happen with such a volatile market.

One thought on “Refinance Demand Up as Mortgage Interest Rates Maintain Low Levels, by Rosemary Rugnetta,

  1. Dear Senators and Representatives,

    Oregon has the distinction of now ranking third in the nation for the number of foreclosures at over 22,000. There is every reason to expect this number to explode even higher. A few of you know of my efforts over the past few years to protect the theft of our home, which still continues to this day.

    It is time to be realistic and face the issue head on, not in a conciliatory manner as some of your peers have. These attempts have been futile and a waste of time. I was appalled over a senatorial bill that passed a year or so ago that was just this: conciliatory. It was no wonder why this came to be, the campaign financing records indicating an average of $20,000 from financial interests into the coffers of each of the committee members.

    The fact of the matter is that there exists a preponderance of evidence supported by several other state court rulings that prove the existence of mass fraud. All one needs to do is crack the door of MERS and peer beyond. Unfortunately, Oregon supports the nonjudicial method of foreclosure or put differently rubber stamping them through.

    This presents a potential problem for the state of Oregon at some point in the near future should it continue to lack in its efforts to find an effective solution. Oregon, as I see it is in violation of my Constitutional right to due process in supporting the illegal seizure of homes. It is only a matter of time before a coalition of people in similar straits come together and file suit with the ACLU against the state of Oregon.

    This is not something that this state needs in times of budget shortfalls.

    Oregon can rise above and set a tone for other states to follow should it take drastic action in the name of justice and its citizens; PLACE A MORATORIUM ON ALL FORECLOSURES. Not only is this justified by other state rulings, but also in the 2009 Supreme Court ruling in Cuomo v Clearinghouse Association in which it said that the OCC overstepped its bounds enforcing a policy that was contrary to Congress’ intent.

    This ruling clears the path for state officials to prosecute and enforce their states civil rights and consumer protection laws that prior had been preempted by the OCC.

    Please stand up for the thousands that have been destroyed by predatory and the fraudulent schemes.

    I am available to speak with and present dozens of prevailing lawsuits and a host of evidence.

    Thank you

    Ken Dost


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