The “application” numbers that get reported for refi statistics are just numbers that get reported. Not really sure how accurate they are or how many lenders are actually reporting these.
Applications do not mean funded loans.
Some apps get declined, some apps get submitted to more than one lender at the same time. Some loans never fund.
Earlier this year when there was some turmoil, the application number was also up leading some cheerleaders to misinterpret that number…it was possibly more duplicate apps.
When people get scared, (usually by the media) they act faster.
It’s all about qualifying today. For loan amounts below $417K, PAR rates were down to 5.50% this past week, for a day or two. Lowest rates in years.
Many people today are paralyzed by fear. They don’t know what to do. Some have NO option to refi because they just don’t qualify for a loan.
For those that do qualify, and have a loan balance of less than $417K with a house worth over $521,250 AND a rate over 6.375%, they should look into a “no cost” loan.
Done properly, it wont add a dime to their loan balance, and can be amortized over the same period that they have now, it doesn’t need to stretch another 30 years.
For those that bought before 2002 and never refi’d, I don’t know what typical rates they are in. It’s very possible to get better loans today.
For people with strong credit profiles, equity and assets, loans ARE easier to get. Although stated income programs aren’t offered by FNMA, with a solid loan it is possible that no income documentation will be required, just confirmation of a job.
