Categorized | Finance and Mortgage

Mortgage Applications on the Rise

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According to recent reports, mortgage applications increased nearly five percent in the past week. The increase was the first in nearly six weeks. In comparison to one year ago, the number of mortgage applications processed is roughly two percent higher this year.


The increase in mortgage applications could very well be a good sign for lenders and realtors. If the number of applications increases once again next week, it may indicate that consumer confidence is back on the rise.


Applications for government loans also increased in the past week. The increase for those loans is up ten percent over the levels from last year. It is likely that those lines experienced an increase, as homebuyers are rushing to beat out the scheduled increases in FHA mortgage insurance premiums.


While the number of applications for mortgage loans increased for new purchases, the number of refinance applications fell to its lowest level in more than six months. Only seventy-one percent of all the applications submitted were from by those looking to refinance.


The majority of home purchase applications were for fixed-rate 30-year loans. Roughly eighty-six percent of applications fell in that category. Only six percent of all the home purchase applications were for adjustable rate mortgage loans.


With consumer confidence growing, and the mortgage-rate still at near-record low rates, economists are hoping that the number of mortgage loan applications continues to increase. As more people apply for new mortgage loans, the housing market will likely continue to experience the growth it needs to pull out of the current housing recession that continues to hamper the economy.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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