Fed Rate Cut Frenzy: Refinancing Boomlet Underway?

I am just off the phone from calling a few major mortgage lenders about what’s up with refinancing now that we’re a few days past the Fed cut. Because, according to Bankrate, you can newly find 30-year fixed conforming loans out there for 5.0-5.2%, which is the sort of thing that gets people’s attention.

The upshot: Mortgage lenders are literally swept off their feet right now. They are reporting major call volume increases, as much as 10x and more, to the point that they are using call centers to handle the massive load. Is there a refi boomlet underway? We will see.

Related posts:

  1. Corning and the Flat Panel Frenzy
  2. The Silicon Valley of Subprime
  3. Data: Latest Adjust Rate Mortgage Reset Chart
  4. Top Ten U.S. Areas by Share of Adjustable-Rate Mortgages
  5. Google Trends and Today’s Fed Rate Cut

Comments

  1. Jerry says:

    I can just hear it now…
    “Hello, thank you for calling XYZ Mortgage Co.”
    “Yeah, uh, I’d like to refinance my mortgage. I hear you have some killer rates now that big Ben has joined the party.”
    “We sure do, we’ll just need your last four W2s and 24 months of bank statements”
    “WHAT FOR? The last guy i used just made me double-dog swear that i make enough to pay the bill.”
    “Click”
    …low rates won’t do much good if no one is writing mortgages.

  2. Frankie says:

    I was surfing a real estate forum today, and there was a woman talking about whether to buy a resale or build a new house. Here’s the kicker:
    She and her H have no savings.
    They have two kids.
    They are both in college.
    They are both going into med school next year.
    Their lender is accepting financial aid award statements as income.
    The bubble lives again!