Categorized | Finance and Mortgage

Lenders Report Strong Increases in the Number of Mortgage Loan Applications

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As both housing prices and interest rates continue to fall, mortgage loan applications are seeing a promising boost.

According to various surveys from around the country, it appears that there may be more potential homebuyers looking to enter the real estate market. Reports have found that mortgage loan applications rose significantly last week, checking in at 13.0% higher than the week prior. Such a large increase is a good sign, as it is indicative of a stream of new prospective homebuyers.

The large increase can be attributed to a number of different factors, though more than anything it demonstrates that low prices and low interest rates are attracting buyers more than ever before.

Fixed-mortgage rates are continuing to drop, and even adjustable-rate mortgages are hitting attractable rates. Couple these low rates with newly proposed standards that may make future mortgage loans with low interest rates much more difficult to attain, and you have the perfect storm. Buyers are starting to realize that it is an optimal time to buy a home, and they are absolutely taking advantage of the opportunity.

With rent rates steadily rising, it is once again becoming cheaper to actually buy a home than to rent, making home ownership an affordable, and highly attractive option for most families and individuals.

If the mortgage loan applications continue to rise, it is very possible that the housing market may see the increase in sales that it needs to make a turn for the better. These latest numbers have both lenders and realtors quite pleased, and both groups can only hope that the numbers continue to follow along the same trend.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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