While seasonal demand has returned to the market in strong force, the rise in home prices has slowed and mortgage rates have actually declined.
Chicago, IL (PRWEB) May 21, 2014
Lenders, like Peoples Home Equity were given quite the pleasant surprise today as mortgage applications increased for the 3rd consecutive week. This announcement was significant as the market has not seen such a positive streak in applications for quite some time.
The Mortgage Bankers Associations (MBA) reported on Wednesday, May 21st, that mortgage applications rose 0.9% for last week ending May 16th. This increase comes after a +3.6% announcement last week ending on May 9th, and a 5.3% rise two weeks prior ending on May 2nd. Part of the applications report is the number of refinance applications which “increased to 52 percent of total applications from 50 percent the previous week.” Unfortunately, purchase loans decreased 3% from the week prior and the “adjustable-rate mortgage (ARM) share of activity remained unchanged at 8 percent of total applications.”
Peoples Home Equity has been emphasizing to its prospective mortgage applicants that the housing market is presenting a special opportunity to home buyers. While seasonal demand has returned to the market in strong force, the rise in home prices has slowed and mortgage rates have actually declined. Please note however, that rates have fallen due to “concerns about the state of the global economy, particularly in Europe,” says Mike Fratantoni, MBA’s Chief Economist. This attracted risk adverse investors to place more money into, “US Treasury securities, thereby pushing interest rates down in the US.”
The MBA also announced on May 21st that 30 year mortgage rates have hit their lowest point of 2014 at 4.33%. The 30-year rate has also declined for the past 3 consecutive weeks. Peoples Home Equity notes that during the active spring and summer period’s expectations are that home prices and mortgage rates see simultaneous jump but thus far buyers have been given a brake. Peoples Home Equity reasons that applications increased in reaction this recent decline in rates. Prospective home buyers to at least apply for a home loan now to lock the current best rates 2014 has to offer.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026