COVID-19 Creates Refinancing Boom

Refinancing mortgage. (Source: Shutterstock)

The unprecedented COVID-19 crisis has led to an unprecedented refinancing boom for financial institutions – and a new opportunity for credit unions to attract new members. And while credit union executives are not sure how long the boom will last, the first mortgage market is showing recent signs of growth after steep drops in home sales earlier this year.

Nonetheless, credit union leaders said they are concerned about how potential significant spikes in coronavirus infections during the summer and fall may stem any economic rebound, scaring homebuyers away from the mortgage market. But it may be that fear and uncertainty that is driving consumers to refinance their homes to strengthen their financial position should someone in their household become jobless or contract the highly contagious and deadly virus in the coming months.