Wake Up Call: Free Refi Boom Almost Over

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Posted To: Mortgage Rate Watch

Earlier this month, I did an interview with the San Francisco Chronicle about repeat no-cost refinancing in a declining rate environment. The piece came out January 4, the day after minutes from the Fed's last 2012 rate meeting were released. Those minutes revealed more bias toward ending Fed support of low mortgage rates than previously thought, and rates rose immediately. So is the free refi boom over? Not quite, but we're getting close. Below I explain, first by defining " free refi ," then by offering some rate market context. In the Chronicle piece, I explained how a smart repeat refinancing strategy is to do no-cost refinances while rates are dropping, then when rates are at the bottom, doing a normal-cost refinance (which has a rate that's .125% to .25% lower than a no-cost refinance...(read more)

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Source: http://www.mortgagenewsdaily.com/consumer_rates/292257.aspx

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