The refinance boom has caused lenders to refocus their efforts a bit, making refinances a priority. However, this could be bad news for potential homebuyers who are looking to purchase during the spring buying season, especially if they are looking to close in a hurry.
"If a buyer finds a house today, they’re going to need a longer amount of time to close," says Tucson, AZ–based mortgage broker Rocke Andrews of Lending Arizona and president of the National Association of Mortgage Brokers, according to The Telegraph. "Things are taking a little bit longer because of the large number of refinances going through the system."
Meanwhile, Elysia Stobbe, author of "How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye,” told the publication that this is an unprecedented time with lenders seeing way more business than they can handle.
"In a desperate effort to slow the deluge of refinance applications, mortgage companies have actually raised rates," according to the report.
"That's why, despite the Federal Reserve slashing short-term interest rates, mortgage rates actually went up for two weeks in a row."
To learn more about the struggles that homebuyers will be facing when attempting to close in a timely manner, click here.