According to data from the Mortgage Bank Association (MBA), mortgage applications across the country had a 2.3% increase in the first week of March of 2019. The development is a reverse of a 2.5% decline in the previous week. The data also reflected that the applications to refinance a home had a 0.2% decrease while the applications to purchase a home rose to 4.3%. On the other hand, the average fixed 30-year mortgage plummeted by 3bps to 4.64% in the same week.
From the year 2007 to 2019, mortgage applications in the country averaged 0.42%. In 2009 however, mortgage applications hit a record low of -38.80 while the country had the highest record of 49.10% in January of 2015.
In a chat with Joel Kan, Associate Vice President of Economic and Industry Forecasting, it was revealed that there was a 5.5% increase in the FHA loan applications. Kan stated that the increase led to a corresponding rise in purchase activity in the mortgage market. This happens to be 2% higher than a year ago, Kan added.
The spring buying period signals to be a very busy one. The reason for this is the fact that purchase applications have now risen year-over-year for a period of four weeks. The average loan size on the other end has also enjoyed a sizable amount of increase, it recently hit a record high. However, the applications to refinance a home had a 1.4% decrease to 38.6% while this time last week, it stood at a 40.0% mark.
These recent developments in the mortgage market are why real estate investors in Seattle, such as Alexander Romanov and Viktor Rybachuk, who have bought more than 50 houses totaling over $10,000,000, feel that buyers of all classes will continue to have a high level of success finding a home to buy.
There are hopes that the remainder of March will be a sort of a good ride to mortgage shoppers as rates hit 379-day low. The last time mortgage rates were this low was in February of 2018. The question stakeholders are asking is, “will the mortgage rates continue to decrease, or have they hit bottom?” The fact remains that stakeholders cannot really say how long this trend will last but it is certain that mortgage rates could reverse the trend at any time.
The best advice that a mortgage shopper could rely on is the fact this might just be the best time to lock the rates. Mortgage rates generally rise faster than they decrease. Should you intend to remain on the safer side when the trend reverses, then locking the rates is the best way to go.