Mortgage Applications Rise In Hopes Of Securing Low Rates

Dated: 01/17/2018

Views: 141

Image title

Last week, mortgage applications rose by 4.1 percent, according to the Mortgage Bankers Association, and there's not much reason behind it but fear. With interest rates beginning to rise, borrowers are jumping in to secure the lowest rate possible and many are refinancing current loans. The number of applications for refinances led the way rising 4 percent followed by applications for mortgages to purchase homes which rose 3 percent. 

With very low inventory continuing to push prices higher homebuyers are chomping at the bit to lock in a low rate and those considering buying have become more motivated to make the move. Overall volume of applications rose 5.6 percent from a year ago. 

Most recently, the average interest rate for a 30-year fixed with conforming loan balances ($453,100 or less) increased from 4.23 to 4.33 with points increasing from 0.35 to 0.54 for 80 percent loan-to-value ratios. The 5/1 ARM rate increased to its highest since April 2011. While the trend does appear to be on a high, the possibility of a government shut down could reverse recent gains. For now, the writing is on the wall - the possibility of rates getting to 4.5 percent and higher is scaring more homebuyers into the market now. 


Blog author image

Liz Peters

An Orange County native and Team Manager of The Kurt Real Estate Group with a heavy background in both Marketing and Transaction Coordinating, Liz has handled it all - from listings to buyers, from t....

Latest Blog Posts

Why You Should Hire An Agent To Find Your Next Rental

If you’re thinking of buying or selling a home, hiring a Realtor has probably crossed your mind. If you’re renting though, you shouldn’t sell yourself short. You could benefit from working

Read More

Title Insurance On New Construction

To follow-up our latest blog on buying new construction, we're going to give you the quick rundown on title insurance and why it is just as important to have on your new home as it is when

Read More

Meet Kurt Galitski Of The Kurt Real Estate Group

About Our Founder- Kurt GalitskiFor Kurt and his team, living in Southern California is as good as it gets. This longtime resident and leading businessman knows Orange County inside and out and

Read More

Help The Kurt Real Estate Group At Coldwell Banker Raise Awareness About Saving Our Oceans And Beach

Help The Kurt Real Estate Group at Coldwell Banker raise awareness about saving our oceans and beaches.You are invited to participate in our Surfrider Foundation Beach Cleanup event.DATE &:&

Read More