Mortgage Applications Up as Lower Rates Solidify

    Mortgage Applications Up as Lower Rates Solidify

    Buyers are responding to the settling of interest rates, with a 5.3 percent increase in just one week, according to the Mortgage Bankers Association. The spike in applications is also a 0.4 percent gain year over year. With interest rates below the 5 percent margin most buyers in 2018 saw, consumers are responding, mortgage applications were up 6 percent over President’s Week in 2018.

    Mike Fratantoni, senior vice president from Mortgage Bankers Association and chief economist, shares, “Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment.” First-time homebuyers will still encounter a highly competitive market and inventory continues to lag behind demand, however the increase in mortgage applications is a great sign for the spring buying season.\

    Refinance loans are pushing the increase in mortgage rates right now, with a solid one-week 5 percent increase. While much of that increase is directly responsive to jumbo loan borrowers who banks compete for, the overall effect is a lower interest rate for all borrowers. For those interested in purchasing a home in the near future, locking in a low interest rate now could make the difference in ability to enter the housing market on competitive ground.

     

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