Week-Over-Week Both Mortgage Rates & Applications Fall

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The Federal Savings Bank comments on recent mortgage application and interest rate data listed on TradingEconomics.com.

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The Federal Savings Bank encourages all to at least get pre-approved for a home loan now before rates possibly move higher.

Lenders like The Federal Savings Bank were a bit disappointed to see both mortgage rates and applications fall for the week ending on October 9th.

As shown on TradingEconomics.com mortgage applications fell -27.6% for the week of October 9th. However, this was hardly a surprise for lenders since for the week prior applications grew 25.5% for the week ending on October 2nd. The Federal Savings Bank was very happy to see the surge in application demand for the week of October 2nd since it means home prices this winter may be abnormally high. Since applications grew strongly during the week of October 2nd, it would be silly to assume the market would experience a second consecutive week of high demand. Thus, The Federal Savings Bank was not surprised to see the large fall of in demand for the week of October 9th. As a reminder, the highest percentage increase of mortgage applications ever recorded in America was achieved in January of this year at 49.1%.

Prospective home buyers and mortgage applicants alike should be paying special attention the weekly percentage change in mortgage applications. A large number of applications is predictive that more American’s will become pre-approved for a mortgage. More American’s pre-approved for a home loan means more competition for purchasing a property. Ironically, the best way to avoid a possible bidding war with others is to also get pre-approved for a home loan now and make an offer on a desired home as quickly as possible.

Now is a great time to get pre-approved for a home loan, mortgage rates were at 3.99% for the week ending on October 9th, as shown on TradingEconomics.com. It was not long ago when The Federal Savings Bank was quoting rates above 4.5%! For serious or prospective buyers alike, The Federal Savings Bank encourages all to at least get pre-approved for a home loan now before rates possibly move higher.

Whether customer, reality or trusted referral source, The Federal Savings Bank understands how important every purchase or refinance transaction is to help our clients optimize the purchase or refinance of their home.

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Giorgio Urbano Ferrero
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