National Real Estate - Mortgage Applications Jump, Recover From Declines After Storm Sandy



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Mortgage Applications Jump, Recover From Declines After Sandy

 
While some economists blame lower application activity throughout much of the year on rising home prices, mortgage rates have been near record lows, offering to offset higher prices. Though fall and winter are typically slower months for real estate activity, a new report from the Mortgage Bankers Association shows application activity increased for the week ending November 9, following a week of significant declines after Hurricane Sandy.

Monday, November 19th, 2012


While some economists blame lower application activity throughout much of the year on rising home prices, mortgage rates have been near record lows, offering to offset higher prices. Though fall and winter are typically slower months for real estate activity, a new report from the Mortgage Bankers Association shows application activity increased for the week ending November 9, following a week of significant declines after Hurricane Sandy.

According to data from MBA's most recent Weekly Mortgage Applications Survey, the amount of applications submitted to lenders for mortgages increased 12.6 percent from the previous week, when measure on an adjusted basis. On an unadjusted basis, the Market Composite Index improved by 12 percent. Additionally, the seasonally adjusted Purchase Index was up 11 percent when compared to the week before, and it grew 8 percent on an unadjusted basis. The PI for the week ending November 9 was also 22 percent higher than the same week of last year.

While more first-time buyers may be beginning their home search, current homeowners are also taking advantage of improving housing market factors, as the Refinance Index jumped 13 percent from the week before. The survey also shows that refinances continue to account for a large amount of applications, making up 81 percent of the total volume. This is up from 80 percent reported one week ago.

"Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast States rebounded strongly this week," said Mike Fratantoni, MBA's vice president of research and economics. "Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60 percent."

Buyers are urged to continue making moves in the real estate industry before home prices and mortgage rates return to levels from before the housing market slump. Recent improvements to both the national housing market and overall economy have also provided more confidence in sellers, according to Redfin. According to the data firm's Real-Time Home Seller Survey, 58 percent of homeowners say now is a good time to buy, while 15 percent say it is an optimal time to list their properties for sale, up from 13 percent in the previous quarter.

National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.