Mortgage Applications are Increasing and Home Builders are Optimistic!

The Mortgage Bankers Association (MBA) released their weekly mortgage application data.  This week’s report shows applications to purchase a home have increased 1% since last week, with purchases making up a large portion of these new applications, due to large amounts of demand.  Since last year, applications are now up 7%.  Applications to purchase a home are nearing their highest levels that were seen back in 2010!

Refinance applications, which are more interest rate-sensitive, were down in this weekly report by 8%, but are still up around 25% from about a year ago.

The National Association of Home Builders (NAHB) conducts a survey every month where they try to get a pulse on the general economy and the current state of the housing market.  By conducting this survey, they create a Housing Market Index for each month.  For April, they released a score of 63 which was in-line with expectations and higher than last month’s score of 62.  The increase was mostly due to the demand of homes found via foot traffic by potential buyers, which increased by three points.  The “sales of new homes” component also increased.  A score over 50 is seen as strong and optimistic for the housing market.




The Advisor 2019 - Spring Edition

Apr 16
Category | The Advisor

30- Second Update:  US Jobless Claims Drop & Interest Rates Remain Low!

For the week ending April 6th, initial jobless claims fell 8,000 to a seasonally-adjusted 196,000, marking the lowest levels in almost 50 years.  These numbers are welcome and surprising, since economists polled by Reuters had previously forecasted that claims would rise to 211,000 in the latest week.  This report is indicative of a strong economy with sustained labor market strength.  Bloomberg Economist Eliza Winger stated, “Employers are adding jobs at a pace that is well above the natural growth rate of the labor force, and job openings continue to exceed the number of job seekers.”

This report came a day after the Federal Reserve officials signaled they’re prepared to move interest rates higher or lower as needed, but due to fluctuations in the economy and overall market risk, it is expected that interest rates will remain on hold all year.  Currently, interest rates are hovering near 15-month lows, a welcome sign for borrowers looking to purchase or refinance a home this Spring.



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!


30-Second Update:  Mortgage Applications Surge on Lower Rates

According to data from the Mortgage Bankers Association’s (MBA) weekly applications survey for the week ending March 22nd, mortgage applications increased 8.9% from the previous week and 5.7% from a year earlier.  Within the 8.9% overall increase, a 12% increase was attributed to the refinance index, while 6% was tied to the Purchase Index.  The surge in applications appear to be a direct correlation to the large drop in mortgage rates following last week’s Federal Reserve announcement, in which all indications point to no more interest rate hikes in 2019.   In addition, some analysts are even predicting that the Central Bank could lower rates during the year.

This is a strong overall indication that the spring buying season is off to a good start.  Lower rates instantly increase a buyer’s housing affordability.  MBA’s Vice President of Economic and Industry Forecasting also noted, “Rates dropped across all loan types, and the 30-year fixed-rate mortgage is now more than 70 basis points below last November’s peak.”   Homebuyers who purchased during that period are in prime position to capitalize on these lower rates and lower their monthly payment with a rate-term refinance.

Now may be the perfect time to reach out to your Advisors Mortgage loan officer to discuss all of your purchasing or refinancing options!!!






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