Mortgage rates dip in early-December, applications rise
In recent months, housing markets across the Eastern Seaboard have experienced considerable strengthening, as many sectors have seen both a heightened number of sales and increased prices. Although some may have expected to see a dip in buyer interest and a slowdown in purchase activity with the conclusion of the summer homebuying season, it appears as if the trend has been bucked this year. As interest rates continue to remain at levels well below historical norms, individuals may be looking to secure residential financing at an increasing rate in the coming months.
Those looking to secure an affordable mortgage can benefit by doing so with the help of Poli Mortgage Group. The trusted lending firm, which has originated more than 40,000 home loans to date, routinely finds clients low rates and provides them with a high level of customer service.
Interest rates relax in second week of December
During the week ending Dec. 12, popular fixed- and adjustable-rate mortgage products declined slightly, each moving lower from the previous week’s amount, according to Freddie Mac.
In its latest Primary Mortgage Market Survey, the organization reported that 30-year FRMs averaged 4.42 percent, down from the 4.46 percent seen in preceding week but still above the 3.32 percent noted the year prior. Average 15-year FRMs were recently recorded at 3.43 percent, which is below the previous week’s 3.47 percent, but higher than the 2.66 percent observed during the same period last year.
Additionally, the government-sponsored enterprise announced that ARMs experienced similar movement last week. Five-year Treasury-indexed hybrid ARMs were recently seen at 2.94 percent, down from the 2.99 percent average noted the week before but still higher than the reading of 2.70 percent recorded last year. One-year Treasury-indexed hybrid ARMs settled at 2.51 percent, after dropping from the preceding week’s figure of 2.59 percent and the 2.53 percent observed the prior year.
Rate fluctuation likely caused by released economic data
Frank Nothaft, vice president and chief economist for Freddie Mac, said that the latest developments in rates may have been due to the recent publication of information regarding economic indicators.
“Mortgage rates were little changed amid a light week of economic data releases,” said Nothaft. “Of the few releases, total nonfarm payroll employment rose by 203,000 in November and the unemployment rate declined to 7.0 percent. Also, single family mortgage debt outstanding increased for the first time since 2008. This is a positive sign as it reflects that the pick-up in new purchase-money originations has offset loan paydowns and led to a net increase in principal outstanding.”
Relaxed rates see an uptick in applications
With a growing number of consumers feeling increasingly confident in their abilities to purchase homes, requests for residential lending recently moved up.
Within its latest Weekly Mortgage Applications Survey, the Mortgage Bankers Association announced that the volume of loan applications ticked up 1 percent on a seasonally adjusted weekly basis. Meanwhile, the refinance share of mortgage activity increased by 2 percent from the preceding week, to 65 percent of total applications. The Refinance Index improved 2 percent week-over-week, while the Purchase Index hiked 1 percent from one week earlier.
As the end of the year approaches, and many prospective buyers look to have loans originated and pending home sales completed, 2013 might prove to be a successful year for the national housing sector. Alternatively, those individuals interested in beginning the process can get a good start by contacting Poli Mortgage Group. Our expansive team of knowledgeable Loan Officers work closely with all of our clients, which has helped us to maintain an A-plus rating with the Better Business Bureau. Call us today at 866-353-7654.