Steve Remington is the Chief Operations Officer of Ark-La-Tex Financial Services, LLC dba Benchmark Mortgage.
The Mortgage Bankers Association forecast for 2018 reflects continued growth in new home sales (housing starts), and a slight increase in existing home sales. The report also reflects a continued, albeit slight, increase in 30 year fixed interest rates.
The Mortgage Bankers Association reported a 4.1% increase in mortgage applications from the prior week.
Steve Remington, Benchmark’s Chief Operations Officer, noted that the increase in applications could be a consumer response to the recent trend in the market, indicating a shift from the prolonged period of low interest rates.
“Mortgage Bankers Association Data indicates a slight uptick in refinances for people who might be trying to take advantage of these lower interest rates. We don’t foresee doom and gloom with rates skyrocketing, but we do see an upward pressure of interest rates in the short term,” says Mr. Remington.
He also suggests that people in the process of building a home, or looking to build a home, may wish to consider looking at options to lock in their interest rates early. “If you are building a house and it takes 6-12 months to build, you might consider seeking a long-term lock option that Benchmark may be able to offer.”
You can read the full report from the Mortgage Bankers Association here.
Source: September S&P CoreLogic Case-Shiller National Home Price NSA Index Up 6.2% In Last 12 Months
Recent Analysis of the September HPI figure show as a 6.2% annual gain in home prices, up 5.9% from the previous month. Several large markets that were hit hardest in the financial crisis are reporting the highest gains, including San Diego (up 8.2%). 15 of the 20 major cities posted increases before seasonal adjustments, but all 20 reported increases after seasonal adjustments.
On the bright side, these price increases continue to be fueled by a strong economy, low mortgage interest rates, and a low inventory of homes; however, continued price increases and low inventories can put pressure on affordability for some people.
Steve Remington
Chief Operations Officer at Benchmark
