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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Fewer Homeowners Expected to Refinance in 2013

Fewer homeowners are expected to refinance their mortgages next year, according to the Mortgage Bankers Association, which predicts interest rates will slowly rise. Learn more.

| BY Adriana Reyneri

Fewer homeowners will refinance their mortgages in 2013, as a slowly improving economy pushes up interest rates, according to an economic forecast from the Mortgage Bankers Association or MBA.

Refinancing accounted for 81 percent of mortgage activity in the week ending October 24, according to the MBA, which expects refinance activity to drop off sharply in the second half of 2013.

Younger investors are more likely to refinance in the near future than their older peers, according to Millionaire Corner’s monthly survey for October. One-in-five investors in their 40s and younger are considering refinancing their home, compared to 15 percent of investors in their 50s and 11 percent of investors ages 60 and older.

Of investors planning to refinance, well over half are considering shortening the duration of their loan by going from a 30-year fixed-rate mortgage to a 15-year fixed rate mortgage, according to our research. Nearly two-thirds of investors in their 40s who are thinking of refinancing are considering switching to a shorter-term mortgage. A small share of investors thinking of refinancing also plans to bring money to the closing to reduce their mortgage amount. Investors younger than 40 are most likely to reduce their mortgage balance when refinancing.

About 10 percent of younger investors say they are waiting to refinance because they expect mortgage rates to drop even further, but the MBA expects rates to slowly inch up and reach 4.4 percent by the fourth quarter of 2013. The average rate for 2012 will be 4.5 percent.

The MBA says it bases its forecast on an anticipated 2 percent increase in gross domestic product for 2013, and an employment rate of 7.4 percent by the end of 2014, but the association says the full impact of the fiscal cliff could cut 3.5 percent to 4 percent from their growth forecasts. The association also predicts that all existing home sales will increase 4 percent in 2013 and 5 percent in 2014, and new home sales are expected to go up 10 percent in 2013 and 14 percent in 2014.