3 Reasons Why Mortgage Applications are finally on the Rise

Have you been noticing “For Sale” signs disappearing as quickly as they appear in your neighborhood? That’s because mortgage volume is increasing. In fact, the total amount of mortgage applications increased 4.7 percent on a seasonally adjusted basis for the week ending July 31, versus the previous week according to the Mortgage Bankers Association (MBA). Here are 3 reasons why mortgage applications are finally on the rise.

1.) More homeowners are refinancing: Rate-sensitive refinances have increased the amount of mortgage applications showing a nearly six percent increase for the week, and the refinance volume is eight percent higher than it was in 2014. Mortgage applications are also twenty-three percent higher than the same week one year ago.

2.) Interest rates are continuing to fall: Lenders realize that lower rates give buyers more purchasing power. That’s why it’s no surprise that interest rates have decreased to its lowest level since May 2015 from 4.17 percent to 4.13 percent, with points decreasing from 0.36 to 0.34 according to the MBA.

3.) Lighter lending standards: Many banks have reportedly eased lending standards slightly for a number of categories of residential loans over the past three months according to the recent Federal Reserve's July 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices.

The increase in purchase activity and mortgage applications is notable for this time of year, and reflects a slowly recovering housing market. If you’re ready to buy or sell your Arizona home, contact the Russo Team and receive a complimentary analysis of your home’s approximate present value on the market today. Your complete satisfaction with our service and representation is always our number one priority. We’ll help you find the right home. -Frank


Search the MLS Now!

Join us on Facebook and Twitter