Low interest rates caused by the COVID-19 economy are driving millennials and Generation Xers in Hampton Roads to refinance their Veterans Affairs-backed home loans.
“We’re in this window of historically low interest rates, so it’s offering people who bought not too long ago a surprising chance to save money,” said Chris Birk, director of education for Veterans United Home Loans, the nation’s largest VA loan purchase lender.
Comparing the region with other metro areas, Hampton Roads is the No. 3 market for total VA loans, the No. 8 market for largest increase in VA refinance loans and the No. 9 market for biggest increase in VA purchase loans from October through June compared with the year before, Birk said.
In April through June, VA loans in Hampton Roads increased by 122% over the same time last year, with purchase loans increasing 13% and mortgage refinance loans increasing 428%, according to Veterans United’s analysis of Department of Veterans Affairs data.