Home Mortgages 2020, Thus Far
With the year 2020 bringing an unexpected roller coaster to the financial industry compared to the end of the 2019 fourth quarter, it is no wonder credit unions are apprehensive about mortgage loans in the near future. We wanted to share some aspects that have been evaluated in the real estate market in 2020 so far, that might put a better head on your credit union’s shoulders.
Home Prices Are On The Rise:
According to the Case-Shiller index from an article on CNBC, home prices in the U.S. rose 3.9% annually in January. The jump outpaced December’s growth of 3.7% and was enough to outpace 2019’s overall home value growth of 3.4%.
Fixed Rates Are Dropping:
According to CNBC, The average contract interest rate for 30-year fixed-rate mortgages of up to $510,400 decreased to 3.45% from 3.49%, causing a wave of members to refinance their mortgages.
Mortgage Loan Refinancing is Growing:
Bankrate says “Currently, refinancing applications spiked by 26% at the end of FEB 2020, and 11 million borrowers stand to save money by refinancing, according to Black Knight’s estimates.”
Oak Tree will always keep your forms up to date and compliant, especially when any new regulatory changes happen that you are not aware of. Be prepared for the upcoming growth of mortgage loan refinance applications with our compliant mortgage loans.