Mortgage Applications Reach 9-Year High
Last week, the number of consumers filing mortgage applications increased 1 %, boosting the overall number by 7%, when compared to the same time last year. This pushed up total number of applications to a level that hasn't been seen since April 2010.
Moreover the total volume jumped 14%, when compared to the same week 12 months ago.
But ever though applications to refinance a home fell by 8% last week, they are still 26% higher than a year ago. This could be in part due to the fact that interest rates for such loans were higher a year ago.
Homeowners Not Retreating
Yet, despite refinancing rates going up two weeks in a row, homeowners are not yet retreating from the market.
Meanwhile, the rate for a 30-year fixed mortgage rose to 4.44%, while points (http://1clickmortgage.com/?
Homebuilders Still Upbeat
In other positive market news, homebuilders say they are pleased with what they characterize as a strong demand for new homes. But they concede that high home prices is putting a slight damper on their long-term market outlook.
Nonetheless, the National Association of Builders and Wells Fargo Housing Index reported that builders' confidence levels increased to 63 points, up 1 point in the month of April.
Fannie Mae Confirms Home Buyer Optimism
The lower mortgage rates are driving consumers to the mortgage market, according to the latest monthly survey by Fannie Mae. The survey found the highest level of optimism among consumers since June of 2018.
The bottom line is that when all factors are considered, the majority of new and existing home buyers believe that interest rates and the current economy make it the right time to act.
It will be interesting to see if this trend continues, especially with the 2020 Presidential season lurking just around the corner.