(PRWEB) June 17, 2005
Dictionaries define it accurately when they define the word surge:
Surge: (1) to rise suddenly to a higher amount or value (the real estate market surged to a record high) (2) to improve one's performance suddenly, especially in bettering one's standing in a competition (the local property market is currently surging).
From coast to coast, this is exactly what is happening to the American property market, it is surging. While loan applications remain unabated, the most popular application being filed is the one for refinancing. Taking advantage of historically low interest rates, and a feverish climate of lender's competition for clients, Americans are acquiring real estate like never before.
The Mortgage Bankers Association has just recently issued a report specifically targeting this phenomenon. They report that the current applications index rose 6.5 percent from the week of June 3rd's level of 709.1, to 755.5 this week. What with the 30-year interest rate averaging 5.62 percent, it is no wonder this report did not show any other results. While refinancing remains as it does (41.2 percent of all applicants as of the end of May this year), applications specifically for adjustable rate mortgages (ARMS) has dropped off a bit from 33.3 to 31. 7 percent.
Due to climbing property values, many applicants are seeking to draw on the now higher levels of equity in their homes, by refinancing with home equity loans (HELOCs). However, all look to reap the future rewards of the savings that will be derived from the low rates currently offered across the board. Currently, this is the highest level for mortgage refinance applications since February of this year.
Home sales have also been encouraged by improvements in the labor market. With more people working, the economy is stimulated, thereby resulting in real estate sales falling in step with these trends. The number of new homes being built has also increased to such levels, that in many parts of the country people are finding it hard to locate the raw materials they need for new home construction. This has caused many home owners to reconsider new construction as an option. Instead, many are now choosing to refinance their current mortgage and stay put for a few more years so that they can bank the money they are saving from refinancing at a lower rate, and to establish more home equity. By choosing this path, they know they will have more to contribute towards their new home's construction when its time to build.
With the continuous down trend in interest rates, it is very unlikely that the real estate market will be cooling down for any time in the near future. Smart property investors are refinancing and putting the savings back into their bank accounts rather than making their lenders' wealthier.
For more insightful information on mortgage loan refinancing please visit http://www.mortgageloanrequest.com. The site also offers a free loan shopping service at https://www.mortgageloanrequest.com/prequalify/refinance-prequalify.html
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