Interest Rate Drop in New Year Boosts Home Loan Applications

2004 Starts With A Bang at Gorman & Gorman as People Lock-In Low Rates Before Rates Rise Again

St. Louis, MO (PRWEB) January 17, 2004 --Mark P. Gorman, executive officer of Gorman & Gorman Home Loans, reports, The big surprise in the mortgage industry for 2004 in both St. Louis and nationwide is that interest rates have fallen again, generating a surge in applications for new loans before rates go back up."

Year 2004 started with a bang as more people take advantage of interest rates that are lower than they were a few weeks ago," said Gorman, who is a past president of The Mortgage Bankers Association of St. Louis.

Since January 1, Gorman & Gorman has experienced a steady increase in applications for home loans of all types. Consumers want to benefit from interest rates drops to near-historical lows before rates rise again."

Currently, the national average interest rate on a conventional, fixed-rate 30-year home loan is approximately 5.66 percent, compared with about 6.5 percent last fall. Todays rates for a conventional, fixed-rate 30-year home loan at Gorman & Gorman range from 5.25 percent to 5.5 percent, depending on the type of loan.

What does this mean for local homebuyers or homeowners who want to refinance? In St. Louis, todays monthly payment on a $200,000 loan with a 30-year fixed rate of 5.5 percent would be about $1,135 per month, a savings of more than $128 per month for the same loan financed about a year ago.

2003 was a record-breaking year for our company and the mortgage industry. Gorman & Gormans total volume of new home loans and home equity loans for the year ended December 31, 2003 was approximately $480 million, up nearly $100 million over our volume for 2002," Gorman said.

Consumers are afraid that rates will go up again, and this is fueling the mortgage industry business locally and nationally," Gorman said. We also have seen more people apply for home loans via Internet links to our website, and we predict this trend of convenience will continue in 2004."

Debbie Gorman, executive officer and co-founder of the firm, said, We are hiring experienced, full-time loan officers and operations staff at Gorman & Gorman to handle our growth and enhance customer service in 2004."

Founded in 1994, Gorman & Gorman Home Loans ranks among the top 15 of all home loan lenders in greater St. Louis, including banks and savings banks. More than 50 percent of the firms new business is derived from repeat business and referrals, as well as recommendations from real estate agents.

For more information, contact Mark P. Gorman at 314.994.9999, visit the website http://www.gorman-gorman.com or call Jeff Dunlap at Powerline Public Relations at 314.721.5505.

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