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!!!
Sources:
https://cnb.cx/2I5B0oA
http://bit.ly/2IacNxo
By: Jon Iacono