Peoples Home Equity expects both home sales and median home sale prices to show a steady amount of increases leading into the late summer.
Chicago, IL (PRWEB) April 01, 2015
Lenders like Peoples Home Equity were excited to see that mortgage applications increased for the 2nd consecutive time for the week ending on 3/27.
As shown on TradingEconomics.com, the Mortgage Bankers Association released its weekly mortgage applications report today showing 4.6% rise. Refinance applications rose 3.9% which purchase applications increase 5.7%. This means the 8 week average changed from -2.9% to -2.08% while the 4 week average greatly improved from 1.1% to 2.22%. TradingEconomics.com state that “Mortgage Applications in the United States averaged 0.51 percent from 2007 until 2015, reaching an all time high of 49.10 percent in January of 2015 and a record low of -38.80 percent in January of 2009.”
Peoples Home Equity viewed this announcement as a return of spring seasonal demand. Now, Peoples Home Equity expects both home sales and median home sale prices to show a steady amount of increases leading into the late summer.
The average contract rate on a 30-year fixed loan decreased from 3.9% last week to 3.89% this week which explains the continued strong demand for home loans. This is the 4th consecutive week the 30 year fixed mortgage rate has declined. One can only appreciate knowing just how low rates are when they read the following from TradingEconomics.com, “Mortgage Rate in the United States averaged 6.58 percent from 1990 until 2015, reaching an all time high of 10.56 percent in April of 1990 and a record low of 3.47 percent in December of 2012.”
Peoples Home Equity strongly encourages prospective home buyers to at least get approved for a home loan now before rate rise further. No one wants to be both pay more for a home during the summer and face higher rates due to increase demand. In addition, the Federal Reserve may intentionally raise interest rates over the summer which means time is running out to lock in a good low rate mortgage.
If interested in purchasing a property and are in in need of a mortgage, consider speaking to a Peoples Home Equity loan officer today at: 262-563-4026