Mortgage Refinancing Up 105% Annually as Rates Remain Below 3%

For the 15th time this year, mortgage rates have broken a record and buyers seem to be unfazed. Mortgage rates dropped from 2.90% to 2.85% last week for 30-year fixed-rate mortgages with conforming loan balances of $510,400 or less, which resulted in a total mortgage application volume increase of 1.1%, according to CNBC. Applications to refinance also advanced by 1% last week, but compared to the same week in 2019, applications to refinance a home are 105% higher.

Last year at this time, mortgage rates were 113 basis points higher. Refinancing now would give anyone who refinanced last year substantial savings on their monthly payments.

Mortgage applications to purchase a home increased 2% for the week and were 26% higher annually. December is not typically a strong month for home sales, but demand continues to surge as Americans continue to work from home. They want more space, and some now have the ability to work from anywhere, giving them far more options for relocation.

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