Mortgage Refinancing Likely to Reach a 17-Year High
Fannie Mae is predicting that refinance volume will reach a 17-year high in 2020, driven by low interest rates. The average rate for a 30-year fixed rate mortgage fell to an all-time low of 3.23% at the end of April, and Fannie Mae is projecting that these rates will be even lower for the remainder of the year, with the second quarter at 3.2%, the third quarter at 3.1%, and the fourth quarter at 3%.
Given these historically low rates, it is likely that 58% of all mortgage originations will be refinances. The Fannie Mae forecast assumes that lenders will originate $1.5 trillion in refinances this year, the highest level since 2003.
to read a Housing Wire article on Fannie Mae’s forecast.