Chicago, IL (PRWEB) March 13, 2014
The Mortgage Bankers Association recently released its latest Weekly Applications Survey Report, on Wednesday, March 12. The report revealed that mortgage applications tapered during the week ending March 7. The Federal Savings Bank regarded the decrease in mortgage activity comes somewhat as a surprise, as the previous week showed a sharp uptick in applications.
The MBA Market Composite Index dropped 2.1 percent at the beginning of March. The mortgage refinance share of the index declined 3 percent, while new home purchase applications dropped 1 percent.
Heading into this new year, the drop in mortgage applications could be a sign that the housing market has slowed. However, with the spring seasonal selling period on the horizon, it is possible that more potential homebuyers will apply for home loans. The Federal Savings Bank is expecting at least some resurgence of mortgage applications to rise soon.
MBA attributes the decline in mortgage applications to rising interest rates. The average rate for a 30-year fixed-rate conforming home loan rose to 4.52 percent, up from 4.47 percent the previous week. Short-term fixed-rate mortgages rose as well, reaching an average of 3.53 percent, slightly above the previous rate of 3.52 percent.
Jumbo loans - those that exceed conforming loan limits of $417,000 - had a small increase in interest during the week, rising to 4.41 percent from 4.37 percent. The Federal Savings Bank attributes the decline in mortgage applications to a combination of mortgage rates, low real estate inventories, and cold weather. This sort of perfect storm has occurred which has slowed the number of applications over the past 5 months. The Federal Savings Bank sees the future of housing growth more reliant on first-time home buyers, which the lender is willing to compromise with if they apply!
Contact the Federal Savings Bank, a veteran owned bank, to explore affordable mortgage options and find the best mortgage refinance rates.