Categorized | Finance and Mortgage

United States Mortgage Applications Surge

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According to the most recent data from Mortgage Bankers Association, the number of mortgage applications processed in the past week increased by more than twenty-three percent from the week prior.

The twenty-three percent increase is based on seasonal adjustments, and the actual increase has been calculated at more than thirty-eight percent in the last week. Refinance applications also increased by more than twenty-six percent. The increase in loan applications and refinancing requests is a direct result of the recent drop in interest rates. Interest rates fell once again last week due to uncertainty regarding Europe’s weak economic state.

The current 30-year fixed-rate is the lowest that it has ever been in history. It is now at 3.91 percent, having fallen from 3.96 percent. The 15-year fixed-rate for mortgage loans fell to 3.33 percent, which is also the lowest that it has been in history.

The increase can also be attributed to the closing of the holiday season. In general, buyers tend to return to the housing market following the end of the holiday season. The sizeable increase in mortgage applications certainly is a good indication that the housing market is on the rise. However, analysts are not quite ready to say that the residential real estate market is ripe for a recovery.

The low rates will definitely continue to impact the housing industry. More potential homebuyers will likely look to enter the market to take advantage of the historic lows. While the low rates will spur more homebuyers to enter the market, the number will still be rather limited, however, until the job market shows more significant signs of recovery.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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