Louisville Properties Blog
Louisville Properties Blog

Mortgage Bankers Association Predicts Slowdown in Mortgage Refinancing

In a time when home sales are down, buyers are nervous, and many homeowners are eager to take advantage of near record low mortgage rates. Mortgage refinancing has been a vital revenue stream for lenders. However, the Mortgage Bankers Association (MBA) is predicting that that stream will slow to a trickle if mortgage rates climb to around five percent by the end of 2011 as the MBA foresees. Compared to rates just a few years ago, five percent is still a very attractive interest rate, but MBA trends suggest that any time rates increase by even a modest amount, interest in refinancing plummets. They report that members will refinance $921 billion in mortgages in 2010, and that volume could drop to a third of that figure in 2011. The MBA is also projecting that new home purchase mortgages could show modest signs of improvement in the near future. They project that this portion of the mortgage market will grow by as much as $146 billion in 2011 to reach a total of $626 billion. They expect the volume of new home sales will rise about two percent, but average home prices across the country will drop by one percent. Time will tell if the MBA's predictions will be true, but they have been tracking these metrics for a very long time and have a vested interest in making accurate projections. As the owner of Louisville real estate, you have a vested interest in getting the best price possible for your property, and we can help. Our knowledge of the Louisville real estate market combined with our internet marketing skills, database of properties for sale and other advantages for sellers make us a worthy choice to help you find a qualified buyer for your property. If you're thinking of selling, call the Louisville real estate experts at Louisville Properties today at 502.744.9504!
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