Real Estate & Area News

Mortgage Apps Rise Despite Drop in Demand For Purchase Loans

Demand for home loans increased by 1.6 percent last week , according to a report issued Wednesday by the Mortgage Bankers Association. The gain came in spite of a drop in requests for purchase loans that was offset by a substantial spike in refinancing demand. The group's seasonally adjusted index of refinancing applications rose 4 percent from the week prior, more than enough to offset a 1 percent dip in purchase loan demand. The 1.6 percent gain in overall applications was also enough to reverse a 1 percent slide in applications from the week ended July 25th. Demand for purchase loans is now down about 14 percent in year-over-year terms, which housing insiders believe is due to the steady rise in interest rates in recent months. As rates continue to climb, more and more American homeowners are coming to the realization that it's time to refinance before rates are as high or higher than the rates they originally got when they bought their homes. There are even opportunities for borrowers that owe more than their homes are worth, also called underwater homeowners, as the HARP program is still available to help those borrowers save their homes.

Demand for home loans increased by 1.6 percent last week , according to a report issued Wednesday by the Mortgage Bankers Association. The gain came in spite of a drop in requests for purchase loans that was offset by a substantial spike in refinancing demand. The group's seasonally adjusted index of refinancing applications rose 4 percent from the week prior, more than enough to offset a 1 percent dip in purchase loan demand. The 1.6 percent gain in overall applications was also enough to reverse a 1 percent slide in applications from the week ended July 25th. Demand for purchase loans is now down about 14 percent in year-over-year terms, which housing insiders believe is due to the steady rise in interest rates in recent months. As rates continue to climb, more and more American homeowners are coming to the realization that it's time to refinance before rates are as high or higher than the rates they originally got when they bought their homes. There are even opportunities for borrowers that owe more than their homes are worth, also called underwater homeowners, as the HARP program is still available to help those borrowers save their homes.




August 6, 2014