Richard Parke
Richard Parke
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More Likely to Apply for Mortgage Refinances

April 6, 2015 12:54 am

According to a recent Federal Reserve Bank of New York survey, the likelihood that consumers will apply for a mortgage refinance in the next 12 months doubled, increasing to 12 percent from 6 percent in October 2014. However, the likelihood of applying for at least one type of credit (mortgage refinances, mortgages, credit, credit card limit increases or auto loans) decreased three percent over the same period.

The survey also found a decline in credit rejection rates, particularly for higher creditworthy groups and for credit card limit increase applications.

The distribution of credit seekers remained largely unchanged, with 30 percent of respondents granted credit over the last 12 months, 10 percent of respondents rejected, and 6.7 percent too discouraged to apply, despite indicating a need for credit.

The average perceived likelihood of the credit application being rejected, conditional on applying, remained relatively stable for mortgages, credit cards and auto loans, and declined slightly for mortgage refinance applications.

Source: Federal Reserve Bank of New York

Published with permission from RISMedia.