Chicago, IL (PRWEB) May 29, 2014
Low interest rates failed to keep up positive run in mortgage applications for the week ending on May 23rd. Peoples Home Equity expects to see a rebound in applications among those desiring to refinance their mortgage.
The Mortgage Bankers Association released their weekly application survey on Wednesday, May 28th. The survey showed that applications had declined -1.2% for last week despite the fact that mortgage rates also declined. The seasonally adjusted purchase index declined -1% while the refinance index also fell -1% from the week prior. As for the refinance share of the market “mortgage activity remained unchanged at 52 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8 percent of total applications.”
Meanwhile mortgage rates showed declines across the board. To start “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.31 percent, the lowest level since June 2013, from 4.33 percent.” However the rate for larger mortgages still trend at lower rates as “30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.23 percent.” FHA 30-year loans are getting particularly attractive as the rate decreased to 4.04% last week “with points decreasing to -0.45 from -0.39 (including the origination fee) for 80 percent LTV loans.” Peoples Home Equity expects to see a surge in interest for this type of loan if available to the applicant. The shorter term loans such as the 15-year fixed rate mortgage saw a decline to 3.42% which is the lowest level since October 2013 and the 5/1 ARMs “decreased to 3.13 percent from 3.14 percent, with points decreasing to 0.19 from 0.29.”
Stay tuned as Peoples Home Equity will be commenting on pending home sales being released on Thursday, May 29th.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026