Right now, in lei of mortgage rates that continue to plummet further and further, reaching record lows not seen in the past 60 years, it may still come as a surprise that the largest amount of people applying for 30-year fixed rate mortgages, most of them aren’t doing so in order to become homeowners. Rather, as a CNNMoney article reports, most people who are applying for 30-year mortgages are doing so that they can refinance their existing, higher-rate mortgage(s).
Speculation as to why more people (more existing homeowners) are refinancing their mortgages instead of potential homeowners applying for mortgages so that they can become homeowners is, at the current time, at due to a combination of issues with the U.S. economy, economic turmoil across the ocean in Europe, and, again speculatively, because despite the already record lows for the mortgage rates, the mortgage rates do not seem to have reached rock bottom yet.
Photo courtesy of acrylicartist.
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