MURFREESBORO, TN – Murfreesboro continues to make waves in the real estate market, securing the 6th spot among the nation’s fast-growing cities with a high volume of mortgage refinances, according to recent data from Construction Coverage. Despite a nationwide drop in refinances, Murfreesboro recorded 22.1 refinances per every 1,000 home loans this year.
In the Nashville-Davidson-Murfreesboro-Franklin Statistical Area, 8,027 mortgage refinances have been completed so far in 2024. Nearly half of those refinances were cash-out transactions, signaling that homeowners are tapping into their equity despite rising interest rates. The local mortgage approval rate stands at an impressive 77.4%, slightly below the state’s approval average of 78.2%.
Most commonly, mortgage refinancing allows a homeowner to replace their existing loan with a new loan at a lower interest rate or different term length. Certain types of refinancing agreements can also enable the homeowner to receive cash in exchange for accrued home equity. The mortgage refinance industry is acutely sensitive to changes in the overall U.S. economy, so as economic conditions continue to change, the mortgage refinancing landscape will shift as well.
Nationally, mortgage refinancing activity has plummeted, with declines of 70% in 2022 and another 61% in 2023. However, Tennessee has remained a stronghold for refinancing, ranking 6th nationwide in mortgage refinances last year. In 2023, the Volunteer State recorded 22.1 refinances per 1,000 households, compared to the U.S. average of 16.3 refinances per 1,000 households.
Cash-out refinances have become a trend in Tennessee, driven by the pandemic’s historic surge in home values. Last year, 51.3% of refinances in the state were cash-out, with homeowners taking advantage of newfound equity. The median loan amount for refinances in Tennessee in 2023 was $135,000.
Murfreesboro’s numbers, while impressive this year, reflect a decline from 2023. Last year, the city ranked 4th on the list with 56.6 refinances per 1,000 households, far surpassing this year’s numbers. A 34.5% decrease in refinancing transactions and a 4.5% drop in approval rates were noted between 2023 and 2024, likely due to rising interest rates.
While the city’s refinancing activity has slowed, Murfreesboro’s housing market remains a focal point for growth and financial activity. Local experts anticipate continued movement as homeowners adapt to changing economic conditions.
