More than one in five homeowners will refinance within year, data shows

TRD New York /
Oct.October 09, 2012 08:30 AM

Despite the skepticism surrounding QE3, the Federal Reserve’s plan to buy up some $40 billion in mortgage bonds a month, new data cited by Bloomberg Businessweek shows that efforts of the Fed and the Obama Administration to mend the housing market are making a difference — keeping interest rates at record lows and boosting refinancing applications.

More than one in five borrowers will restructure their home loan within the next year; of that fifth, those who have at least 20 percent equity in their homes are the most likely to refinance. An estimated one in three will lower their interest rates over the next year if the Reserve holds its course, according to Lender Processing Services data analyzed by Businessweek.

And for those who are still underwater, the Obama administration’s Home Affordable Refinance Program has allowed for a 65 percent increase since the start of 2012 in the refinancing for those that own at least 20 more than their home’s value, Businessweek reported.

“You get more benefit when people buy homes. … It’s the purchases of new homes that generate the construction activity, the furnishing, all those things that help the economy grow,” Ben Bernanke,

Chairman of the Federal Reserve, said last month at a press conference. [Businessweek]Christopher Cameron


Related Articles

arrow_forward_ios
Paul Volcker (Credit: Getty Images)

Paul Volcker, Fed Chair who infuriated real estate, dies

Jerome Powell and New York City construction in October 2019 (Credit: Getty Images)

The Fed lowers rates, and once again real estate is loving it

Housing and Urban Development Secretary Ben Carson (Credit: Getty Images, iStock)

HUD wants to jumpstart bank lending on low-income homes

Lenders issued the most mortgages in 14 years last quarter (Credit: iStock)

Nonbank lenders could give serious boost to cooling housing market

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

The number of closed sales fell by more than 14 percent year over year in the third quarter (Credit: iStock)

Low mortgage rates are killing Manhattan’s all-cash buyer

70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

Federal Reserve Chairman Jerome Powell (Credit: Getty Images)

Fed cuts rates, signaling caution ahead for real estate investors

arrow_forward_ios
Loading...