Categories: Cross River NY

Refinances continue to drop, meaning good news for REITs | Cross River Homes

 

The Refinance Index fell 0.2% (from 1,693 to 1,690), as rates fell 2 basis points. Refinances have been dropping like a stone, as the people who have equity in their homes have already refinanced and the ones left with high rates are underwater.

 

The MBA reported that the share of refinance applications fell to 61.5%. Going forward, home price appreciation will drive refinance activity as previously underwater homeowners eventually get back to positive equity and take advantage of lower rates. Slowing refinance activity will be a negative for originators like PennyMac (PMT) and Redwood Trust (RWT). It has already taken its toll on Nationstar (NSM), which reported disappointing earnings

 

http://finance.yahoo.com/news/refinances-continue-drop-meaning-good-170008664.html

 

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

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