Refinancing Still Has Some Life

With interest rates for mortgages hitting record lows over the last year it was widely held that eventually refinancing activity would dry up. However, one overlooked component was that not everyone could refinance due to their home’s equity (or lack thereof) position. With home prices climbing this has opened up the refinancing market to more potential families even with interest rates climbing off the record lows. After all, for people now in a position to refinance even a 4.75% rate would look considerably more attractive than 6.5% say. There were government backed programs that offered some avenue of refinance previously for underwater owners, but the feeling of actually peeking above water again is positive enough for some buyers to jump now at the opportunity when before it seemed refinancing was a difficult proposition. We’ll see how long this trend continues as much of it will be determined by home prices continuing to climb and where interest rates head.

Also keep your eyes peeled for a big resurgence in years to come in Seller financing.

Stephen Woodall
REALTOR, GRI @ Long Realty Company
Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.

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