The Race to Refinance

As mortgage rates drop, homeowners are taking advantage of refinancing in surprising numbers.

Realtor.com reports that last week refinancing applications surged 58 percent from a year ago, and 38.5 percent from the previous week. This comes as the average rate for a 30-year, fixed-rate loan dropped to 4.06 percent, the lowest it has been since January 2018.

At the same time, the number of mortgage applications overall increased 28.4 percent last week compared with the previous year, and purchase applications were up 9.8 percent.

“Purchase applications have now increased year over year for four weeks, which signals healthy demand entering the busy spring buying season," Joel Kan, the Mortgage Bankers Association associate vice president of economic and industry forecasting, said in a statement.

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