Low Mortgage Rates Driving Increase in Refinance Requests

September 26, 2009

What looks like a sloping silhouette of a mountain range in the chart above is actually the past three months of mortgage rates on Zillow Mortgage Marketplace and as you can see, mortgage rates for September have been pretty sweet, hovering around 5.00%.

As a result of these low rates, refinance loan requests on Zillow are up 20% so far this month compared to August.  The chart below shows that lower mortgage rates appear to be driving this spike in demand.

Refinance and purchase loan requests will likely continue to surge since the Federal Reserve announced it will continued to purchase mortgage-backed securities into next year.  This activity should help to keep mortgage rates at low levels.

Originally posted here.

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