Reports of a massive spike in mortgage applications hit the market in spite of the slow progress of interest rates.
Recorded data from the MBA (Mortgage Bankers Association) showed that the overall number of application was up by 4.9 percent based on a week-to-week comparison, which ended on November 14. These figures were modified in accordance to the demands of the yuletide season and the celebration of Veterans Day.
Property acquisitions led to the rise of these figures, which was a big change when compared to the reported figures of the last few months. Even though request for refinancing posted only a 1 percent increase on a week-to-week basis, requests to buy a house increased by up to 12 percent, reaching its highest peak to date this year, and beating July’s record.
MBA chief economist Michael Fratantoni has said that these data show that the higher employment rates seen in the past months gave people more purchasing power in terms of properties.
These numbers can dictate the ability of people to purchase properties in the future, since prospective buyers must get themselves a loan before they attempt to close a deal on a home of their choice. A report by the NAHB (National Association of Home Builders) quoted an increase in the number of potential and willing home buyers.
However, mortgage applications are still 6 percent lower than the past year’s records, and are actually 9 percent lower than last month’s records. According to Mortgage New Daily’s Matthew Graham, the MBA’s modification opened up opportunities at a time when instability is plaguing the property buying scene.
In any case, the application for buying a property this season is weaker as far as previous records are concerned. These little increases have paved a way for the market value of properties to rise and fall higher than it used to be. While the spike in mortgage applications is a good sign for the housing economy’s recovery, it must continue to rise at this kind of rate in order to strengthen to the fragile state of the market. The normally contracted interest rate in 30-year fixed-rate loans (which are priced at $417,000 and below) dropped by 1 percent (from 4.19 percent to 4.18 percent), according to a statement made by the MBA. With the rates this week going somewhat lower, a number of reputable borrowers were said to be receiving quotes within the 3 percent range again.