As the second half of 2024 unfolds with an interest rate cut finally taking place, the potential for an increase in refinances remains a hot topic within the mortgage and title insurance industries.
“Mortgage rates sitting right now at about 6.5 percent would really need to decline further to create that spur or a rush of refinancing activity,” Network Transaction Solutions Operations Manager Andrea Somers told The Title Report. “There’s also a lot of external factors, such as the outcome of the upcoming election, that could play a crucial role in shaping economic conditions and potentially influencing mortgage rates. There’s always that interconnectedness of political and economic factors that has to be taken into consideration.”
Despite uncertainty surrounding interest rates, Somers advocated for preparation within the industry in anticipation of higher transaction volume.
“I think right now we’re sitting at a perfect time to start getting prepared early, looking at eClosing technology, cutting down transaction times, and cutting expenses,” she said. “This comes from thinking of the challenges we faced during the COVID-19 refinancing boom, which caught much of the industry off guard. We went from one week having a conversation about being overstaffed and everything’s about to stop, to the exact opposite. Things, of course, didn’t stop.”
For more from Somers and Brie McDaniel and Kay Underwood Zach, co-owners of Title Insurance Consultants, on factors that could drive or hinder a refinancing surge, lessons learned from past booms, and improvements the industry can make to better handle future challenges, read the entire story in the eClosings Innovations report. Download your free copy today.