Although the real estate purchase sector in the United States as a whole is still struggling to return to where it was before the crash, one section of the real estate market has taken off in recent months: Mortgage Refinances. This is due primarily to historically low interest rates and new FHA Streamline Refinance Requirements.
Historically Low Interest Rates
There are several reasons for a recent spike in Mortgage Refinancing. First, interest rates on refinances are extremely low. Several years ago, refinancing your home at an interest rate lower than 4.5% meant buying down the rate using the points system. Now it is not uncommon to find interest rates in the 3.5% range without any points. It is, however, unclear how long interest rates will stay as low as they are now.
