Low Rates, Refis and Strong Appreciation, Oh My!

The Mortgage Bankers Association has released their application report for the week of March 29th.  In this release, we see that single-family home sales increased by 3% and refinances increased by a whopping 39%!   This tremendous surge in refinances, which is now nearly half of all submitted mortgage applications, certainly has to do with the recent decline in interest rates. 


CoreLogic is forecasting homes across the nation will appreciate in value, on average, by 4.7% over the next year. They are seeing a slight decrease in appreciation currently, but that won’t last long.  Homes from this time last year have appreciated by approximately 4% across the nation.  The CoreLogic data is derived for their Home Price Index which is calculated on owner-occupied houses from every state. 


With historically low interest rates and strong forecasts of appreciation in the housing market, the numbers are pointing to a very fruitful time to purchase or refinance a home.  Also, if you purchase, not only can this investment create a lot of wealth, it also gives you a place to live and call a home!