Mortgage interest rates continue to drop according to a recent report
Last week’s anemic jobs report for May pushed interest rates down even more with the demand for home loans rising.
Mortgage application increased 9.3 percent last week from the previous week, according to the Mortgage Bankers Association. The outcomes are seasonally adjusted, including for the Memorial Day holiday. The amount of applications may have been offsetting the big drop from two weeks ago, or responding to a minor drop in interest rates.
Applications to refinance a person’s mortgage increased 7 percent, seasonally changed, from the previous week, and also are nearly 14 percent more than one year ago. Interest rates were higher at this time last year. Mortgage applications to purchase a home did increase to 12 percent for the week, yet they are down 19 percent in the past four weeks as well as down 6 percent from the same week last year. With increased demand for housing, loan applications should be higher, however the lack of affordable residences to buy is likely keeping volume down.
The majority of Americans who have reported now as being a great time to buy a house dropped to 29 percent in May on a month-to-month study by mortgage huge Fannie Mae. While the May increase in revenue gives further support to ascertain that potential home owners may increase even more this summer.
The average contract interest rate for 30-year fixed-rate home mortgages dropped to 3.83 percent from 3.85 percent. With rates staying down and an estimated increased mortgage applications demonstrates the proper conditions for a successful summer season for home buying. Most property owners report paying far less for their home in comparison to market rate rental prices in their area. Today, more than ever, it would be beneficial to look into purchasing a home with no guarantee of continued low rates.
To get a free evaluation on what you need to do to purchase a home, give me a call. People are usually closer than they think to qualifying for a home mortgage and with a little help can successfully qualify with some work.
Thank you for reading.
Donny Karcie, MBA
RE/MAX Mountain Properties
731 W Gurley Street / Prescott, AZ 86305