Page 24 - BB_Sep_2019

Refinancing Activity Buoyed

by Federal Reserve Rate Cuts

The latest data from the Mortgage Bankers increasing to levels not seen since November 2016.
Association’s Weekly Application Survey show a While refinancing demand was high,
strong reaction to the market among prospective purchasing activity slipped by 2% on a seasonally
homebuyers and those wishing to refinance their adjusted basis, but was still 7% higher than what
existing home loans. There are two main factors: it was a year ago. This bodes well for future home
The Federal Reserve’s cutting of interest rates and sales activity, and a small rebound for single-
the ongoing trade war with China. family permits.

The 30-year fixed-rate mortgage dropped by NAHB AUG 2019
15 basis points from the previous week, which was
the largest decrease
in over three
months. In the latest
weekly application
survey, the share of
refinancing activity
rose by 3% to 53%
of all mortgage
activity. Interestingly,
refinancing activity
of government
mortgage loans
responded more
strongly to the
decline in rates than
did conventional
mortgage loans,

24 SEPTEMBER 2019 | GREATER SAN ANTONIO BUILDERS ASSOCIATION