Massachusetts’ mortgage refinance boom continued in November as the number of residential mortgage refinances rose by 52 percent compared to November 2019, according to data from The Warren Group, publisher of Banker & Tradesman.
Refinance volumes totaled $11.3 billion in November for one- to three-family homes and condominiums, the most volume during November since 2015, which saw about $13 billion in refinances that year.
Massachusetts had 26,543 residential refinances in November compared to 17,472 in November 2019, when the refinance boom was already underway. More than 19,600 single-family homeowners and 3,700 condo owners refinanced in November compared to about 12,500 and 2,200, respectively, in November last year.
While the state’s overall residential refinance volume stood at $116.8 billion year-to-date through November, a 20.9 percent increase compared to the same time period last year, refinance volumes on single-family homes and condominiums have more than doubled compared to last year.
Refinance volumes on single-family homes year-to-date is at $61.7 billion, up 104 percent compared to the same time period last year, and condo owners have refinanced for nearly $12 billion, a 126 percent year-over-year increase.
The refinance boom in 2019 picked up in the second half of the year after the Federal Reserve made the first of its three cuts to the benchmark interest rate at the end of July. Interest rates have reached historic lows several times in 2020, including today. Freddie Mac reported new lows this morning, with the 30-year fixed-rate mortgage averaging 2.67 percent for the week ending Dec. 17, while the 15-year fixed-rate mortgage averaged 2.21 percent.
Despite the slow start to the spring real estate market at the start of the pandemic, the number of single-family and condominium purchase mortgages year-to-date exceeds 2019’s activity, as homebuying has continued well into the fall.
And 2020 saw the busiest November for single-family and condo purchase mortgages in recent years. With 5,025 single-family purchase mortgages, November activity increased by 20.6 percent compared to November 2019. Mortgage volumes rose even more, reflecting rising home prices in Massachusetts. Single-family volumes in November increased 40.5 percent compared to last year, to $2.31 billion.
Condominium mortgages increased by 44.9 percent compared to last November, to $785.26 million. Condo purchase mortgages increased by 13.9 percent compared to last year, with about 1,600 condo purchase mortgages in November.
With 48,952 single-family purchase mortgages year-to-date, 2020 has 100 more than the same time period last year. Single-family mortgage volumes were at $21.76 billion year-to-date compared to $19.7 billion for the same time period last year.
Condo loan volumes now exceed last year’s pace through November, though the number of purchase mortgages trails last year by 5 percent. Condo purchase mortgages were at $6.3 billion year-to-date through November compared to $6.28 billion for the same period last year. So far in 2020, there have been 15,948 condo purchase mortgages.
