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Refinancing Remains in High Demand with Rates Staying Low
|Higher home prices in housing markets across the country may be affecting mortgage application activity, but becoming a homeowner is still significantly more affordable when considering mortgage rates from last year.
Thursday, August 16th, 2012
Higher home prices in housing markets across the country may be affecting mortgage application activity, but becoming a homeowner is still significantly more affordable when considering mortgage rates from last year.
Data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending August 3 reveals activity slipped 1.8 percent on a seasonally adjusted basis from the previous week and fell 2 percent on an unadjusted basis. The seasonally adjusted Purchase Index also dropped 1 percent from a week earlier and was 12 percent lower than this time a year ago.
According to the survey, the Refinance Index decreased 2 percent from the week before, but current homeowners are still seeking lower mortgage payments, as the refinance share of activity matched levels reached last week. Current homeowners represented 81 percent of all applications.
The most recent report from Freddie Mac showed average rates for fixed-rate mortgages rising slightly after weeks of reaching new record-lows. Despite the increases reported in the Primary Mortgage Market Survey for the week ending August 2, rates remain notably lower than a year ago, when the average 30-year fixed-rate mortgage rate was well above 4 percent.
As other economic factors continue to improve, housing market factors will also stabilize. While higher home prices may not seem ideal for prospective buyers, they indicate an improving industry and provide current homeowners with properties listed for sale more confidence.
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.