The Mortgage Bankers Association reports that consumer demand for home loans increased by 1.1 percent. More Americans are interested in obtaining their own home. New Homes San Diego offers beautiful new homes in San Marcos and Chula Vista.
The report also indicated that applications for refinancing of mortgages increased 0.9 percent compared to the week ending on the 13th. That is its highest level since December 10, 2010. For a four week period it is up 7.1 percent. As a result, the refinance portion of the mortgage market increased 66.8 percent of the total demand for mortgages. The week before was 66.7% of total demand. The refinance share of the market is said to be at its highest since January 28, 2011.
Let?s take a look at the numbers for the Purchase Index. Adjusted for season, it ticked up 1.5 percent over the previous week while unadjusted Purchase Index went up 0.8 percent. These numbers are actually quite substantial and significant; it?s 3.1 percent higher than last year. Gmac offers a large number of mortgage calculator tools.
Interest rates have also changed quite a bit, let?s examine the changes. The 30-year rate moved to 4.69 percent from 4.60 percent while the 15 year rate crept up to 3.78 percent from 3.75 percent. Points decreased to 0.69 from 0.93 for thirty year fixed and decreased to 1.04 from 1.22 for 80 percent LTV loans.
Even though rates increased slightly they are still overall. Experts have predicted these changes for the year 2011. On the other hand, the demand for new loans have not increased as expected.
Experts say that these numbers show that there is a slight increase in the refinance segment of the primary mortgage market. However, these same analysts are saying that the secondary market has remained constant. Many prospective home buyers missed out on the low rates and do not want to repeat the same mistake again. So it is said that there is a lot of pent up demand.
Actions taken by the United States Housing and Urban Development Department?s that ended Federal Housing Administration (FHA) streamlining and increased Mortgage Insurance Premium costs have led to an increase in refinancing overall. This has caused many existing FHA clients from meeting the strict guidelines.
Meanwhile, new single family home sales increased 7.3 percent in April after seasonal adjustment. April?s annual rate new home sales achieved the high end of what analysts were predicting with 323,000 new homes being sold. Most analysts expected sales to fall around the 300,000 area. This marks the second consecutive increase since February when new home sales were 278,000. By the way, the 278,000 sales number is said to be the lowest level of sales since the Census Bureau started monitoring statistics 50 years ago.
Sales rose in all regions of the country. However, there was a 23% decline in annual rate sales over all when compared to April of last year. Sales then were 420,000 units, which was a pre-crash peak and just before the end of a home buyer tax credit incentive. Median sales price for a home was $217,900 which is up from $208,300 from the same period last year. The average sales price was $268,900 which is down from the average of $270,500 last year.
Three quarters of families who purchased a home had an average family income. Analysts say that 74.6 percent of all homes sold in the country were affordable to a family with an income of $64,400. These numbers are the highest since the 1990?s and it means that more Americans than ever can afford to purchase. It also marks the ninth quarter in a row in which the affordable home price bettered 70 percent. Usually these numbers do not even reach sixty five percent. Part of the reason for this increase is low interest rates.
Mortgage regulations are stricter now when it comes to putting down a substantial down payment plus the income requirements are stricter now. As a result, less families qualify for a loan. In addition, buyers appear to be holding back expecting home prices will decline. The most expensive states to purchase include New York and New Jersey. Other areas with high home prices include Orange County and San Diego.
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Source: http://www.real-estate-blog.org/loan-demand-and-application-for-refinancing-is-going-up/
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