The increase in mortgage activity is a positive sign for the housing market heading into the spring selling season.
Chicago, IL (PRWEB) March 05, 2014
According to the latest report from the Mortgage Banker's Association on March 5th, 2014, mortgage applications picked up during the week ending Feb. 28. From the previous week, mortgage applications rose 9.4 percent on a seasonally adjusted basis. The Federal Savings Bank was enlightened by the news and believes its a positive sign for the real estate market.
Specifically, applications for a new home purchase were up 6 percent from the week before. Compared to a year ago, however, applications were down 19 percent.
Mortgage refinance activity, which has been steadily declining as mortgage rates have risen over the last year, continued its downward trend, dropping slightly from the previous week. Though the change was minimal in the one-week span, the refinance index was 3 percent lower on Fed. 28 than it was two weeks earlier.
At the same time, mortgage rates dropped marginally, from an average of 4.53 percent to 4.47 percent for a 30-year fixed-rate mortgage. The rate for jumbo loans - those that exceed conforming loan limits of $417,000 for most housing markets - also declined, reaching an average of 4.37 percent, down from the previous average of 4.47 percent.
Short-term home loan interest rates also fell, decreasing to an average of 3.52 percent in the final week of February, down from the previous rate of 3.56 percent. The drop in interest rates is a relief for many homebuyers who are looking for a low cost mortgage in 2014.
The Federal Savings Bank thinks, the increase in mortgage activity is a positive sign for the housing market heading into the spring selling season, as previous reports have showed that fewer Americans are applying for a home loan. Rising home prices and mortgage rates have affected affordability levels in certain markets, though price appreciation appeared to have slowed at the end of 2013.
Contact the Federal Savings Bank, a veteran owned bank, to explore the best mortgage refinance rates and affordable mortgage options.