The refinancing portion of all mortgage market activity increased to 64 percent, up from 60 percent just the week before
Chicago, IL (PRWEB) December 12, 2014
The Federal Savings Bank knows that recent rise in mortgage applications reflects the advantageously low rates currently available to prospective home buyers and owners interested in refinancing. According to the Mortgage Bankers Association's weekly applications survey, mortgage applications for the week ending Dec. 5 increased 7.3 percent from the previous week on a seasonally adjusted basis.
The MBA's Refinance Index also received a boost from low rates, rising 13 percent by Dec. 5, compared to the week before. The refinancing portion of all mortgage market activity increased to 64 percent, up from 60 percent just the week before. Adjustable-rate mortgages accounted for 7 percent of all mortgage applications.
Perspective on current rates
Potential home buyers, particularly first-timers, are smart to dive into the housing market now while rates remain low and before the Federal Reserve begins to increase interest rates, which may happen as soon as mid-2015. Current mortgage rates are hovering around 4 percent, which is a steal compared to rates a decade ago. In fact, mortgage rates of this low level were incredibly rare prior to 2010, as Bankrate pointed out in an article titled "History of mortgage interest rates." From the 1990s into the 2000s, average mortgage rates moved between 7 and 9 percent, finally falling to below 7 percent in 2003.
Best to start looking now
While mortgage rates have fluctuated throughout 2014, homeowners and buyers can be confident the current rates and those in the near future are advantageous to their wallets. Buyers should start looking for their dream homes now as the economy moves closer toward the Fed raising the federal funds rate, which will cause mortgage rates to rise.
First-time home buyers should contact The Federal Savings Bank, a veteran owned bank, to learn more about historically low interest rates and the mortgage pre-approval process.