Friday, July 13, 2012

Mortgage Refinancing Unattainable for Many

Mortgage rates hit new lows and applications to refinance fell for the third straight week. It defies logic, unless of course you operate in today's tight mortgage market.

It's not just about the rate anymore. Negative equity, strict underwriting and big bank backlogs are keeping many borrowers from taking advantage of these incredibly low mortgage rates.

"If history is any lesson, the only thing that can really extend refi activity in a low rate environment is a loosening of underwriting standards to bring more borrowers into the market. And that is not likely to happen anytime soon," said Guy Cecala of Inside Mortgage Finance.

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