Mortgage rates for 30 year fixed loans are also below their 15 year historical average which is closer to 5.7%
Chicago, IL (PRWEB) April 17, 2014
The spike mortgage applications which Peoples Home Equity has been waiting for finally occurred last week. March Housing starts rise but than expected while building permits posted a surprise decline.
The Mortgage Bankers Association (MBA) announced a 4.3% rise in weekly mortgage applications for the week on April 11th. Peoples Home Equity has been waiting to see such a rise which helps erase the declines seen over past weeks. The lender also expects further surprise increases in applications as the housing market activity picks up into late spring and enters summer. The MBA also announced that refinancing activity actually increased to 52% from 51% the week prior. Lastly, the report pointed out that mortgage rates declined across all home loan types. This is advantageous for prospective home buyers that have been waiting to apply for a mortgage based on the rising trend of rates.
The other big news from Wednesday, April 17th was from the U.S. Census Bureau announcing a 2.82% rise in housing starts as well as a -2.4% decline in building permits. This was the second consecutive month where housing starts rose. While the decline building permits was disappointing from 1014 in February to 990 in March, lenders such as Peoples Home Equity noted that permits remained close to their 5 year high of 1039 thousand.
Overall, Wednesday’s housing announcements were constructive for the market and probably caused more good than harm. Both housing starts and building permits are essential for adding new inventory to the market and Americans can expect both of these factors to increase in the future as current data readings remain far below historical averages for the past 15 years. Mortgage rates for 30 year fixed loans are also below their 15 year historical average which is closer to 5.7%. Prospective home loan applicants should consider applying for a home loan now as rates have shown a recent pullback.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026