Chicago, IL (PRWEB) January 17, 2014
According to the weekly mortgage application survey from the Mortgage Bankers Association (MBA), applications have risen by 11.9 percent for the week ending January 10. These results are seasonally adjusted, and the previous week had been adjusted to reflect the New Year’s holiday. Unadjusted numbers show a 61 percent increase from the previous week.
The Weekly Applications Survey has been a leader of housing and mortgage industry information since 1990. Responses are collected from both mortgage bankers and commercial banks.
The increase in application numbers is a result of the weekly decrease in mortgage rates. CF Funding is happy to announce that affordability is also up from one month ago. The Midwest showed the largest gains in affordability, with an increase of 3.4%, but all regions showed improvement over the month. Unfortunately, affordability is still down from last year. However, that is to be expected as a result of the new QM rules as well as the Federal Reserve’s change of budget for quantitative easing.
Mortgage rates continue to rise, as the state of the housing industry shows improvement. According to Mortgage News Daily, “Most lenders are still at 4.5% as the most efficient rate for the best qualified buyers (best-execution) on conforming, 30yr fixed loans…” and “when adjusted for day to day changes in closing costs, rates rose an equivalent of 0.03% today.” If you are considering applying for a home loan, CF Funding suggests that you apply sooner than later to avoid rising rates.
Although rates are rising, the increase in home prices is expected to slow in 2014. Doug Duncan, chief economist of Fannie Mae, recently gave his predictions for the housing market this year on The Daily Ticker. According to Duncan, the inventory of homes should increase in 2014 due to investors cutting back on buying large amounts of homes. An increase in the supply of homes should drive home prices down. Those who are considering shopping for a home can look forward to this in 2014.