FHA Loan Activity Improves in Late February
Chicago, IL (PRWEB) February 28, 2015 -- Although applications for mortgages could decrease during the winter buying season, The Federal Savings Bank finds that lower borrowing costs in early in 2015 could result in a higher number of home buyers later on in the year. The latest Mortgage Bankers Association mortgage applications survey report released on Wednesday, February 25th, found there were fewer home buyers applying for mortgages in the week ending Feb. 20.
Despite the overall decline in mortgage applications, some lending activity improved from the previous week. The MBA said the share of applications for U.S. Federal Housing Administration loans rose to 15.3 percent in the most recent report, up 0.1 percentage point. The administration previously announced it would reduce insurance premiums, which makes FHA mortgages more desirable, especially for first-time home buyers.
Home buyers could still benefit from low interest rates, which could lower their borrowing costs over the life of the loan.
Improved mortgage affordability could help homeowners maintain their repayment schedules. The MBA also noted mortgage delinquencies fell to a seasonally adjusted rate of 5.68 percent in the fourth quarter of 2014, down 71 basis points from the same period the previous year.
Not only are lower delinquencies rates better for lenders like The Federal Savings Bank, but also better for property prices. With less delinquencies occurring, there is a lower chance of foreclosed property for sale on the market thus raising the average listing prices for properties across the nation. Home buyers are aware that fewer bargain priced properties are available these days. As we enter spring, prospective mortgage applicants will get approved for home loans and convert themselves into first-time home buyers. This will lead to higher demand real estate and a more active 2015 for America’s housing market.
As first-time home buyers look for mortgages, they can contact the Federal Savings Bank, a veteran owned bank.
Giorgio Urbano Ferrero, The Federal Savings Bank, https://www.thefederalsavingsbank.com, +1 8473386062, [email protected]
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