Loan Applications to Buy Homes Climb by 5 Percent

Entre represents Toryon Tech in sale of two Streamwood buildings
May 4, 2017
It’s Now Cool to Have Mismatched Fixtures
May 5, 2017
yorkville il real estate agent lauralee mcElroy

Loan Applications to Buy Homes Climb by 5 Percent | Yorkville IL Real Estate Agent

The real estate market is signaling stronger sales ahead as homebuyers finally returned to the mortgage market after two weeks of weakening during the height of the spring housing season.

yorkville il real estate agent lauralee mcElroyHome buyers are not deterred by the rising mortgage rates and, subsequently, are returning to the mortgage market.

On a seasonal adjusted basis, mortgage applications to buy a home grew 4% last week.  These are viewed as a way to estimate future home buying activity.  The Mortgage Bankers Association reports that purchase applications are now almost 5% greater than they were just one year ago.

“More prospective home buyers returned to the market after two weeks of decreases in purchase activity, which were possibly due to spring break season and Easter,” says Joel Kan, the MBA’s associate vice president of industry surveys and forecasting.

MBA also reports that home buyers were virtually unfazed by last week’s higher interest rates.  The average 30-year fixed rate mortgage was 4.23%, up from last week’s 4.20%.

However, last weeks higher interest rates did discourage current homeowners from refinancing their homes.  Applicatioins to refinance were down 5% last week.  This decreased the Mortgage Bankers Association’s activity index by .1% for the week.  This index totals the purchase and refinancing demand.  Now, total mortgage application volume is 15% less than the same week in 2016.  This is due to less refinancing activity.  Volume for refinancing is 33% less than the same week in 2016, the Mortgage Bankers Association reports.

READ  8 DIY Decorating Tips with Fall Leaves

Source: “Mortgage Applications to Buy a Home Finally Spring Back, Climbing 5%,” CNBC (May 3, 2017)

Want to stay up to date on all of the latest real estate news and tips?  Subscribe to the Yorkville Il real estate agent blog by using the form at the bottom of the page and get real estate tips and news directly to your inbox.

Whether you’re buying or selling a home in Yorkville IL, you’ll want an experienced real estate agent in your corner.  Contact Yorkville IL’s smart choice for all of your real estate needs, Lauralee McElroy.

Leave a Reply

Your email address will not be published. Required fields are marked *