Sacramento area contractors and other home improvement-related businesses will likely see an uptick in business. That's because a lot more homeowners in the region lowered their mortgage payments this past summer and may have more money to spend.
More than 14,400 refinance loans were secured by Sacramento area properties in the third-quarter; up 54 percent from a year ago.
Daren Blomquist is with ATTOM Data Solutions, the research firm that released the statistics.
"That's way higher than the national increase of 16 percent," says Blomquist.
He also says on the flip slide, the number of people in the Sacramento area borrowing money to buy a home was down five percent compared to a year ago.
According to Blomquist, uncertainty about the presidential election likely kept some would-be home buyers on the sidelines.
"The decrease in purchase originations may not be great for the core housing industry. The re-fis is a good sign that that housing wealth will trickle down to other parts of the economy," says Blomquist.
Blomquist says the prospect of rising interest rates, following the election, may have prompted many homeowners to refinance.
"Whoever became president, there was a potential that that could help push up interest rates which is exactly what we've seen happened," he says. "Interest rates really have spiked the last few weeks. And so people decided to lock-in those low interest rates with refinancing before the election."