Is the Refi Boom Over in New Jersey?

Not quite, but the end may soon be approaching. The Federal Reserve, the nation’s central bank, has already indicated that they may consider increasing rates for 2013 and 2014, depending on the status of the economic recovery for New Jersey residents. It certainly doesn’t appear that these record-low rates will drop much farther.

Is the refi boom over for New Jersey residents, which led to trillions of mortgage dollars being refinanced over the past 24 months, spurred by the record low interest rate environment?

The Mortgage Bankers Association, the non-profit organization that compiles and analyzes data in the residential mortgage market, has also predicted a lessening in refinance activity in 2013 and 2014. Refinance applications, which exceeded 1.2 trillion in 2012, is expected to decrease by approximately 30%, as they expect that number to drop to 800 billion for 2013, and then down to $358 billion for 2014. 

Additionally, this dramatic decline won’t be alleviated by new mortgages for new home purchases. These loans are predicted to show only gradual increases from 500 billion in 2012 to 592 billion in 2013, and then to 703 billion in 2014. 

The overall trend indicates a comprehensive decline. However, the major banks are still expected to delve deeper into residential lending. Bank of America has announced additional new branches with focuses on mortgage activity, whereas the outlook for Wells Fargo indicates an overall bullish market for both new mortgage AND refinance activity.

It is still too early to tell if these projections have any merit, but certainly, the cyclical nature of housing and mortgage always comes into play.

One should look into history as a guide, but also, find the trusted residential mortgage advisor should anyone need a mortgage or have a mortgage that needs refinancing.  

At Bond Street, you’ll find that our experience and wisdom are our best assets in guiding the homeowner properly. Though the company prides itself on professional execution in delivering a mortgage, the company prides itself most on its personal relationships with their clients.

View the original article here