Mortgage Applications Skyrocketing!
The Mortgage Bankers Association (MBA) has this cool thing called the Market Composite Index. It's basically a fancy way of tracking how many mortgage loan applications they're getting. And guess what? There's been a whopping 10.4 percent increase on a seasonally adjusted basis from the previous week. This is hot on the heels of a 10 percent jump at the start of the year. Even without seasonal adjustments, we're talking a 26 percent rise!
We've been saying that once rates come down the market is going to become much more competitive with buyers jumping back in the market and we're starting to see the beginning of this. Don't say we didn't warn you.
Refinancing is getting hotter, too. Refis are up by 11 percent from the previous week and even better than the same time last year by 10 percent. This means a whole lot of folks are jumping on the chance to rework their existing mortgages, making up 37.5 percent of all applications.
Even if you purchased a house less than a year ago, if today's rate is roughly 1% lower than what your rate is, you probably benefit from a refinance. Feel free to reach out and we can introduce you to our preferred lender with the lowest rates.
Rates Taking a Dip
Now, here's something to perk your ears up! Joel Kan from the MBA tells us that mortgage rates are dipping across all loan types. Our lender is regularly quoting people between 6.5-6.75%. Why, you ask? It's all thanks to some friendly incoming inflation data and Treasury yields moving lower. This drop in rates is stirring up more interest in both buying and refinancing homes.
- The share of applications for FHA loans saw a tiny decrease, and the same for VA loans.
- The average rate for jumbo 30-year fixed mortgages fell to 6.86 percent.
- If you're looking at a 15-year fixed mortgage, rates dropped to 6.24 percent.
- And for those who like to keep things a bit more flexible, the average rate for 5/1 adjustable-rate mortgages went down a tad to 6.14 percent.
So, what does all this mean for you? If you're on the fence about buying a new home or refinancing your current one, these trends could be a sign to make your move. And if you're selling, this might just be the perfect time as more buyers could be entering the market.
Remember, if you've got questions or need some expert advice, I'm always here to help. Let's make your real estate dreams a reality!Posted by Andy Mandel on