Mortgage rates today are the lowest they’ve been since the
election last November, but that did little to encourage people to either
refinance their mortgage or take out a new loan to purchase a home. Typically,
when rates drop, applications to refinance home loans rise – which they did, 2%
up from last week – but they are still down 40% from last year. The average
mortgage rate last year was 3.45% and now it’s 3.90%; so naturally it would
make sense that more activity would occur last year, but mortgage applications
to purchase a home specifically fell 2% over the week but remains 10% higher
than last year.
So, what does this mean?
Refinancing is down from last year realistically since many
have already refinanced at rock-bottom rates, so the pool of potential
applicants is shrinking even though more people applied to refinance this week
than last week.
And the lower rates did virtually nothing for home-buyers because
prices are so high due to the lack of inventory available, but it seems more
have taken advantage of lower rates throughout the last year.
Total mortgage application volume, all-in-all, is up 0.1%
over the last week and down 22% over the last year. It’ll be interesting to see
how this fluctuates throughout the rest of the year as The Fed unwinds some of
its “Quantitative Easing” scheduled to begin in October.
Click Here to read the Original Article
Click Here to Read more on The Fed and Quantitative Easing
No comments:
Post a Comment