Even in tough times the mortgage industry is still remaining resilient as LendingTree reports that refinance applications have nearly tripled. Each of the 50 big cities saw applications skyrocket with just five states underperforming during the rush.
"A mortgage refinance, particularly at these historically low rates, presents an attractive opportunity for homeowners amid economic uncertainty," said Tendayi Kapfidze, LendingTree's chief economist.
"Compared to a year ago when rates were 1 percentage point higher, consumers save nearly $60 per month — or $700 per year in payments — for every $100,000 borrowed. Interest savings add up to about $20,000 over the 30-year term of a typical mortgage."
The five states that underperformed include: West Virginia, Alabama, Mississippi, Kentucky and Arkansas. Meanwhile, San Francisco and Raleigh saw the most growth in loan refinance requests at 417% and 406% respectively.
"States and cities with higher average credit scores and greater home-price appreciation are better positioned to take advantage of the historic refinance opportunity," according to the report. "The improvement in the balance sheets of those households could potentially help some areas recover more robustly when the economic crisis induced by the coronavirus ends."
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