Posted by: Prashant Gopal on January 16, 2009
I just wrote a story with fellow Hot Property blogger, Chris Palmeri, about the flood of mortgage refinancing applications loan officers are fielding as interest rates hit record lows.
The Washington Post today has an interesting story that says that only about half of refinance applications are getting approved and that borrowers are increasing their odds by going to multiple lenders.
This graph from Freddie Mac gives you a sense of how fast interest rates fell after the Federal Reserve and Treasury announced Nov. 25 that it plans to buy up to $500 billion of mortgage-backed securities.
(It’s a bit hard to read but the graph shows the ups and downs from Jan. 3, 2008 to Jan. 15,2009. Rates start plummeting after 11/20/08.)
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.