Chicago, IL (PRWEB) March 26, 2014
Weekly mortgage applications have still not been able to build a trend of positive week over week reports. Wednesday’s Mortgage Bankers Association (MBA) weekly mortgage application survey report showed a decline of -3.5% for the week ending on March 21st. This news was quite disappointing for Peoples Home Equity, a Midwest based lender, has been waiting patiently for the data to surge in the spring and summer months.
The decline in weekly mortgage applications may seem mild when compared to drop off seen in the refinance share of the market. The MBA’s refinance index fell 8% from the previous week, which makes the refinance share of mortgages just 54% of all applications, it used to be 57% 2 weeks prior. The refinance share of the market is now at its lowest since April 2010.
The average contract rate for a 30-year fixed rate mortgage increased to 4.56% from 4.50% which is “the highest level since January 2014.”
Peoples Home Equity has been emphasizing the point for months that mortgage rates will continue higher due to the Feds actions of quantitative easing. Now just imagine what will happen to mortgage rates if the market sees a surge in weekly mortgage applications surge? The reality is that mortgage rates are on the verge of moving dramatically higher when home sale activity picks up. Speaking of home sales, pending home sales for February will be reported soon, on Thursday morning. Peoples Home Equity does not expect to see any positive number as the market has already seen enough weekly/monthly declines of existing home sales and mortgage applications. However, since expectations are reaching their lows, the market will push mortgage rates up a lot on a day when a rebound in data is announced.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.