Less Americans Are Applying For A Mortgage
It seems like our economic troubles will never end. Factors leading to our current economic state include the recession, high unemployment, debt ceiling controversy and now the downgrade of U.S credit rating by S&P.
Wherever you look, the news is bad. And all that news is also impacting on the housing market. In short, people don’t like chaos. And, now a days there is plenty of it. And it is impacting families decisions on whether to buy a home. People are afraid to buy a house even though interest rates are low.
More and more Americans are deciding to rent instead of buy.
The next bit of news to take its toll on the housing market is word from the Mortgage Bankers Association (MBA). It says that the purchase index for new mortgages is at its lowest point in 15 years as of the week ending August 19. The Market Composite Index has also dropped rather significantly.
Refinancing als took a hit, the Refinance Index dropped to almost two percent. Still, the refinance market share accounted for 79.8 percent of all mortgage applications. That is an increase of 1 percent, the highest percentage increase since November 2010. The adjustable rate mortgage (ARM) share of activity jumped 6.2 percent from 5.8 percent of total applications the previous week. Find more mortgae and real estate info at Homes Brookfield.
After Standard and Poor downgraded the U.S. credit rating, analysts forecasted that there would be a rise in interest rates. At first, however, interest rates fell as investors continued to seek out U.S. Treasury Bonds despite the downgrade. However, now it appears as though interest rates may start to rise. The average contract interest rate for a 30-year fixed-rate mortgage rose to 4.39 percent from 4.32 percent. Certainly, only a modest increase, but an increase nevertheless when considering how interest rates were falling. The average interest rate for a 15-year fixed-rate mortgage jumped to 3.56 percent from 3.47 percent. refinance home loan can help you obtain a home loan and a mortgage.
In addition, purchase applications for jumbo loans fell more than 15 percent and purchasing applications for federal government housing programs dropped 8.2 percent. The MBA index covers more than 50 percent of all retail residential mortgage applications in the U.S. The index surveys mortgage bankers, commercial banks, and thrifts.
Mortgage rates may increase because of the unpredictability of the secondary mortgage market. The volatility is making it costlier for lenders to do business. Experts say that it’s still a good time to buy thanks to the low rates. home financing offers information about homes and real estate.
Written by Pefizta Dolbherg
