Housing and mortgage trends in early 2011
Handing over house keys
5 housing trends in early 2011

Homeowners will hold off on refinancing
2 of 7

Mortgage refinancing is expected to experience a "very steep drop" in 2011 compared with 2010, according to Michael Fratantoni, vice president of research and economics at the Mortgage Bankers Association in Washington, D.C.

The prospect of higher interest rates on home loans is one reason for that outlook, but not the only reason.

Homeowners who have ample equity, sterling credit and steady employment probably refinanced at least once in 2009 or 2010, locking in low fixed rates and consequently, have little or no incentive to refinance again in 2011, Fratantoni says.

Those who didn't refinance in the last two years due to inadequate equity, unstable employment or impaired credit probably won't do so this year either because, while still-low interest rates may create an incentive, those challenges will remain to be overcome.

"Trillions of dollars' of mortgages that, on paper, look like they would be candidates, haven't (refinanced) yet, and we don't see them as a large factor in the year ahead," Fratantoni says.




Show Bankrate's community sharing policy
          Connect with us

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.


Jean Chatzky

Jean Chatzky: Buy a home now?

Whether you're talking interest rates, PMI or new down payment requirements, 2015 may be the last best year to buy. Here’s how to do it right.  ... Read more

Partner Center

Connect with us