The rate on 5/1 ARMs declined from 3.18% to just 3.09% which makes this loan type very attractive now for those who can afford it.
Chicago, IL (PRWEB) March 19, 2014
Weekly mortgage applications, released by the Mortgage Bankers Association were released this morning, March 19th which showed a slight decline from the week prior. For the first time in a while, Peoples Home Equity was not discouraged by the data. The lender believes as long as the decline in application numbers is minimal, seasonal strength will return to the market and boost housing activity.
Indeed, today’s negative report in weekly mortgage applications was minimal with just a -1.2% decline for the week ending on March 14th. The report stated that “The refinance share of mortgage activity decreased for the sixth straight week to 56.5 percent of total applications from 57 percent the previous week.” The refinancing share of lending is bound to decline as mortgage rates continue their long term trend higher. However, as more home increase in equity, a resurgence of demand in home equity loans and credit anticipated.
Peoples Home Equity reminds readers that applications jumped 9.4% ending the last week of February on the 28th. This surprise spike more than offsets the two consecutive declines that the MBA has reported, -2.1% for March 7th, and -1.2% released today for last week. The lender believes there will be successive surges weekly applications.
While home loan rates decreased for every type of mortgage: 30-year Jumbo fixed, 30-year fixed, 30-year FHA, 15-year fixed, the largest decline was among 5/1 ARMs. The rate on 5/1 ARMs declined from 3.18% to just 3.09% which makes this loan type very attractive now for those who can afford it.
Peoples Home Equity is now standing by for the last housing data point of the week, the all important existing home sales numbers. The lender is hoping to see a rise in sales to end the winter data on a positive note.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300