Higher Cash out Refinance Rates Could Dampen The Industry, Say Experts
Atlanta, Georgia -
The higher interest rates could see the number of people reaching for cash out refinance nose dive in the coming months. At present, cash out refinance rates are at a two-year high after they were lowest in 2020.
New York City, NY – Moreira Team put out a press release earlier stating that rising cash out refinance rates could adversely affect the industry. The higher interest rates mean that few people want to take this route and would instead consider other cheaper loan types. However, opinions are split as some experts believe that people may continue to seek cash-out refinancing.
Usually, interest rates drive demand for a particular financial product. The demand for mortgages generally lowers when interest rates are raised and will increase when they are lowered. Lower interest rates also have many people refinancing their mortgages, as they did in 2020, to take advantage of the lower monthly payments. However, the cash out refinance rates this year are at a three-year high, and the Moreira Team forecasts fewer people seeking refinancing.
How much of an impact these interest rates will have on the market is still not yet fully known, but the Moreira Team believes it could be significant.
Readers can learn more about the Moreira Team by visiting the lender’s official website at https://moreirateam.com/.
“Judging by previous similar trends, we could be seeing up to a 55% decrease in the number of people seeking cash-out refinancing, at the very least. However, at this point, we aren’t seeing a significant impact just yet. Still, as news of the higher interest rates starts to ripple across the industry, it will eventually mean fewer people seeking this financial product.” Said a representative for the Moreira Team.
She added, “The cash out refinance rates may not deter some homeowners for whom this would be an excellent way to receive near-instant cash given their present financial health. However, for everyone else, there are other options. That said, anyone seeking mortgage refinancing right now would want to speak with one of our experts first to know the full breadth of options available.”
About The Moreira Team
The Moreira Team is one of the leading mortgage experts in the US. The company has worked with dozens of clients over the years, offering advice and custom-tailored solutions. The Moreira Team’s unbiased approach and attention to detail have helped set it apart from the competition.
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Moreira Team | MortgageRight
1230 Peachtree St NE #1900a
Atlanta, GA 30309