A recent CNBC article explained that the prolonged decline of mortgage interest rate averages may soon come to an end.
During the past several weeks, Freddie Mac has continued to reveal low interest rates for the nation's mortgages, which has made homeownership more affordable for many potential buyers. In some cases, fixed-loan rate averages have reached lows unseen in nearly 50 years.
However, banks may soon put an end to these rates, as the number of homeowners looking to refinance their mortgages to take advantage of the low averages has become overwhelming.
"[Banks] don't have to go lower on the rates to get business because they make more money if they don't go to the lower market rate," Guy Cecala of Inside Mortgage Finance told the news source. "It's also a way to manage a potential flood of refi calls."
In recent weeks, nearly 80 percent of mortgage applications submitted on a weekly basis have involved refinancing activity. While this trend has slowed recently, the article forecasts heavier activity if interest rates fall below 4 percent.
In Texas, the economy continues to flourish with more home sales and jobs being created, according to recent reports. If interest rates continue to fall, more Dallas and Houston properties may be purchased.
Courtesy of 2M Realty News