It is hard to imagine the interest rates today are below 4% AND home prices have dropped significantly AND STILL people are still hesitant to refinance to lower their monthly payments, AND new homebuyers are not buying when the rates and prices are so low. The public does not have any confidence that things are getting better so they are waiting for positive signs in the economy….mainly, the job market, the housing market, consumer confidence, and government leadership, to make up their minds to refinance or buy.
There are still 100% financing available (USDA and VA) and low-downpayment loans (FHA and FNMA), but people are still hesitant. They may be holding off on their decision to buy or refinance due to (?): 1) their insecurity about their jobs / income, 2) the thoughts that the home prices will continue to drop, 3) the fear that they may not qualify for the loan, or ???????
What sayeth or thinketh you?