the current state of higher purchase applications versus a year ago means the housing market is on track for a more active 2015.
Chicago, IL (PRWEB) February 05, 2015
Home lenders like People Home Equity were pleased to see that weekly mortgage applications rose for the week ending on January 30th.
According to Wednesday’s Weekly Survey announcement from the Mortgage Bankers Association (MBA), applications rose 1.3% from January 23rd to the 30th. Looking at the MBA’s Refinance and Purchase indices, “The Refinance Index increased 3 percent from the previous week” and “The adjusted Purchase Index increased 16 percent compared with the previous week and was 3 percent higher than the same week one year ago.” Peoples Home Equity noted that with the current state of higher purchase applications versus a year ago means the housing market is on track for a more active 2015.
The notion that purchase activity is gaining a large share of applications is supported by the fact that “the refinance share of mortgage activity decreased to 71 percent of total applications from 72 percent the previous week.”
In terms of purchase loan activity, “the FHA share of total applications increased to 13.1 percent this week from 9.1 percent last week. The VA share of total applications decreased to 8.5 percent this week from 10.7 percent last week. The USDA share of total applications decreased to 0.6 percent from 0.7 percent last week.
In terms of mortgage rates on different term contracts, Peoples Home Equity was expecting to see rates dip a bit lower than announced. The average rate on a 30-year fixed mortgage was 3.79%, “the lowest level since May 2013, from 3.83 percent, with points increasing to 0.29 from 0.2 (including origination fee).”
Jumbo loan rates decreased to 3.82% from 3.87% the week prior with points decreasing to 0.22 from 0.33 (including origination fee). The average rate on an FHA 30-year loan dipped to 3.69% from 3.31% the week prior “with points remaining unchanged at 0.07 (including the origination fee).
Shorter terms contracts like 15-year fixed loans closed at 3.14% from 3.15% the week prior. Also 5/1 ARMs increased to 3.03% from 2.96%, with points decreasing to 0.39 from 0.42 (including origination fees).
Peoples Home Equity wants to point out that these loan rates are very low. Rates are currently far below their 30 year average. If thinking to purchase a property now is the perfect environment to do so with financing, even if one has cash, financing is so affordable investors may find better use for their cash (such as a down payment for a third home or remodeling).
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026