Refinancing demand has slowed significantly after a brief spike in activity. Despite this, refinancing applications are still up by 39% compared to the same time last year. The interest rate for 30-year Federal Housing Administration-backed loans remained steady at 6.7%, while 15-year FRMs also saw little change.
Lenders are now offering more credit to consumers, but only to those with better credit. Ahead of the spring home buying season, borrowers can expect more options. However, adjustable-rate mortgages continue to be a lower-risk option for many, with rates falling 12 basis points to 6.08% last week.
The setback in refinancing demand is largely due to higher interest rates making borrowers hesitant to take out new loans.
Source: https://www.nationalmortgagenews.com/news