Mortgage Application Slightly Drop Despite Record Low Rates
Despite historically low home mortgage loan interest rates, mortgage applications fell 5.1% last week according to the Mortgage Bankers Association. The refinance index fell 7% from one week earlier, but is still 84% higher than the same time last year. This week marked 11 straight weeks of year-over-year refinance activity growth. Mortgage refinance levels will continue to be high as people seek to lower their monthly mortgage payments in this uncertain...Mortgage and Real Estate Trends to Watch for the Rest of 2020
When discussing the mortgage and real estate markets, forecasting is very important. With today’s very uncertain future there are a few things regarding these markets we may be able to predict to take advantage of buying conditions. Homes may be harder to find for buyers. Inventory has been low in 2020 and with 20% fewer existing homes for sale in May 2020 than May 2019, one could expect this trend to continue. Sellers may be uneasy opening their homes for open houses and prospective buyers. Lack of affordability may hold back home sales. Resale home sales are up 30% year over year. The scarcity level of homes in the entry level-priced market has continued into the middle of the year causing first-time buyers to have less choice in options available to their budget. Refinances levels continue to boom. Low mortgage rates make now a great time for home owners to refinance and this trend should continue as rates stay low throughout the end of...Senate Cuts Expansion of VA Mortgage Funding Fee
In the Blue Water Navy Vietnam Veterans Act passed by Congress last year, benefits to Navy veterans exposed to Agent Orange during the Vietnam War were provided. In the small print of the deal, it was written that the funding for these benefits would come from raising the fees on mortgages backed by the Veteran’s Administration. This fee hike in last year’s bill temporarily raised the VA mortgage funding fee from 2.15% to 2.3% for first-time buyers and from 3.3% to 3.6% for repeat buyers through January 1st, 2021. Since most veterans roll their fee into their loans, they are paying off their now higher fees with interest over the course of their loans. For now the attempt to have active-duty military and veterans pay for the benefits for other current or former members of the armed forces has been derailed thanks to an amendment by Kansas Senator Jerry Moran. His bill to provide funds to adapt housing for disabled vets was approved by Congress recently. Time will tell the final effects the Blue Water Navy Vietnam Veterans Act and any possible amendments will have on current and former armed services...Homebuying Pointers in an Unpredictable Market
If you’re in the market to buy a home this Summer you’ll need to be careful navigating this uncertain time. In this high demand homebuying market, here are a few thing you may want to consider. Know your market: On average, home prices jump 9% from January to June according to a new analysis from NerdWallet. Generally the inventory in this period is higher as well, but with the hot housing market this years inventory may be lower. Get preapproved: Your credit score, debt-to-income ratio, and down payment will all factor into whether you get a home loan with favorable rates. Putting in an offer on a home with a lender’s preapproval may set you apart from other offers. Prepare to be flexible: Between the increased mandates both state and nation wide and the need to keep all parties healthy during this unique time, being flexible in how you see the homes you’re looking at is important. Determine where you’re willing to compromise: Supply for the housing market was tight to start 2020 and so far this year demand has outweighed additional supply. Going into this process knowing what you’re willing to compromise on will ensure you don’t miss a chance to submit an offer. Consider waiting: Postponing your home purchase can be disappointing but depending on where you’re shopping, waiting could get you a lower price with less competition and increased financial security. Increasing your confidence in your decision by thinking everything through will make you feel more comfortable in any purchase you...Mortgage Market Climbing Again
For the ninth straight week the number of mortgage loan applications has climbed. In the last calendar week, the number of applications for home mortgage loans has risen 4.1% according to the Mortgage Bankers Association. Part of the rise in home mortgage loan numbers is the rise in the refinance rate (5%) over last week’s numbers. This 5% gain also represents a 112% increase in the refinance levels year-over-year. The share of home mortgage loan applications dedicated to refinances also saw a slight gain from 64.2% to 64.8% of total application volume. Some more detailed information regarding this week’s application data is as follows: FHA’s share of mortgage applications fell this week to 10.8% from 11.1% VA’s share of applications fell to 10.8% from 11% There appears to still be high buyer demand in the market moving into the end of the...Connect With Us
