According to reports, refinance applications are running at their lowest level in three months. Last week they fell by 10% compared to the previous seven-day period, but more significantly, there’s been a 16% drop in annual loan volume.
For borrowers looking to refinance, the national average 30-year fixed refinance APR is 3.30%, up by 10 basis points compared to last week.
A bullish Niemiec dismissed concerns, however, pointing out that the industry has seen refi booms “coming to an end for the last 10 years”.
He said: “Volume might slow down a bit, but people should still continue to focus heavily on building their strategy around refi volume – it’s not going anywhere anytime soon, especially with values increasing the way they have. There’s never been more equity in homes, and there’s never been more debt in America, so consumers need help.”
He said purchase value had “slowed for many reasons”, citing the Covid pandemic and the lack of inventory as the two dominant factors, although he pointed at recent predictions that said purchase value would increase next year.