Mortage Refinance Has Long Wait Lines As Rates Remain Low
Last month the cost of refinancing a mortgage was just 4.05% and that low cost of refinancing left homeowners clamoring for the chance to lock in lower rates, there is just one problem, the lines have been so long that many people haven’t had a chance to take advantage of the low rates.
According to the Wall Street Journal, the financial crisis left fewer banks in the mortgage market which in turn has led to longer wait times as they struggle to keep up with increasing refinance demands.
The study found that it now takes 70 days to refinance a home loan while it took just 35 days to accomplish the same goal one year prior.
Because of the long wait times some experts warn that its depressing the economic impact of low rates. According to one industry veteran refinancing home loans:
“Really gets the economy going, and it isn’t happening right now.”
The last three years has seen a record number of home refinances which have saved American consumers upwards of $46 billion, money they have used to pay down debt and buy more consumer products. However economists report that those numbers are historically low given the cost of refinancing at this time.
One small mortgage lender tells the WSJ:
“It really is a rat’s maze for the consumer” as big banks are “taking super-high profit margins.”
While closing a refinance could take months consumers are still encouraged to apply at which time they may be able to lock in super lower rates before they begin to increase once again in the future.