Wednesday, February 9, 2005

Rising Rates Seen Cutting Home Sales Record

While home purchasing, home refinancing and equity loans were at modest levels, home sales across the nation reached record setting levels in 2004. But rising interest rates will result in fewer new mortgages and fewer homes sold in 2005.

How will this impact loan application figures? According to a national mortgage group predicted that loan originations and sales will still remain near record highs. That said home owners will still be rushing into the market for low rate refinancing products in an effort to lower mortgage interest rates, reduce monthly mortgage payments and save if possible thousands of dollars over the life of the loan.

The tempting factor is the offer to take on a cash out refinancing loan. Cashing in can put the borrower in a better financial position so long as some of the funds are invested in a program that results in a good stead return.