Mortgage rates will not remain low forever once mortgage applications post surprise upside readings.
Chicago, IL (PRWEB) March 13, 2014
Weekly mortgage applications survey results were posted on TradingEconomics.com today, March 12th. The announcement of -2.1% was a disappointment for Peoples Home Equity. The lender was hoping to see a new trend begin after the week ending on February 28th showed a 9.4% increase.
The Mortgage Bankers Association released their weekly mortgage application survey report today, March 12th, and the results were negative for the week ending on March 7th. Of total mortgage activity, the refinance share decreased to 57% which is “the lowest reading since April 2011”. Last week the refinance share represented 58%. As for adjustable rate mortgage, their share of applications remained unchanged at 8%.
While the decline was disappointing, readers must remember that March 12ths announcement of -2.1% follows a 9.4% increase for the week ending on February 28th. The historically average for weekly mortgage applications has been a tad over 0 or roughly 1%. The housing market is seasonal with mortgage applicants showing more activity in the spring and summer months. Since the market is just entering spring with the weather still cold Peoples Home Equity expects more applicants to show in April.
As for mortgage contract rates, for 30-year fixed loans worth less than $417,000, the rate increased from 4.47% to 4.52%. The average contract rate for 30-year Jumbo loans also increased from 4.37% to 4.41%. For FHA 30-year loans, the contract rate increase from 4.13% to 4.18%. For the smaller duration loans, 15-year fixed contract rates increased from 3.52% to 3.53%, and 5/1 ARM rates increased the widest margin from 3.09% to 3.18%.
Peoples Home Equity reminds that while mortgage rates have increased they are still below their historical average implying Americans can still obtain a home both at a value on price and interest. Mortgage rates will not remain low forever once mortgage applications post surprise upside readings. Note, Peoples Home Equity has already provided data that mortgage rates tend to be higher outside the winter months in a November 15th released titled, "43 Years of Data Shows Historical Bias in Mortgages Rates."
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300