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Mortgage Applications Rise 4.1% According to Most Recent Data

by Steve Remington

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.

Top 5 Financial Reasons To Buy Now

by I Am Benchmark


 

Increasing Prices 

Over the last year, home prices have increased by 7.1%, according to CoreLogic’s latest Home Price Index (HPI) report.  Over the next year, the HPI also predicts that prices will continue to rise at a rate of 4.9%. Clearly, we are long past the dip in home pricing. Home values are expected to continue to appreciate for years to come. In short, waiting no longer makes sense.

 

Anticipated Rising Mortgage Interest Rates 

The Primary Mortgage Market Survey published by Freddie Mac shows that interest rates for a 30-year mortgage have drifted around 4%. Experts predict that rates will rise over the next year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors project that rates will increase by this time next year. An increase in rates is likely to cause your potential monthly mortgage payment to rise if you plan buy your next home.

 

Either Pay Yourself or Pay Your Landlord

Some renters who are uncomfortable with the obligation of a mortgage have not yet purchased a home. The reality is that unless you are living rent-free, every rent payment you make is paying your landlord’s mortgage. As a homeowner, your mortgage payment can be considered ‘forced savings’ in that it builds equity in your home that you can use to your advantage later in life. As long as you continue to rent, you will continue to build equity… for your landlord. When you buy a home, the advantage in housing payments is yours. For more on this, read Millionaire Tells Millennials To Buy A Home, published in January.

 

Rent Control

A fixed rate mortgage payment will not increase over the life of the loan. Rent, on the other hand, will likely continue its historic path. See the graph above from the U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: Rent of primary residence, retrieved from FRED, Federal Reserve Bank of St. Louis: https://fred.stlouisfed.org/series/CUUR0000SEHA.

In short, buying a home can help you take control of your housing costs.

 

It Might Be The Right Time To Act

The cost of a home is determined by (1)the price of the home, and (2)the current mortgage rate. It appears that both are on the rise. But what if they stagnated? Would you wait? Consider the real reason you are buying and decide if you think it is worth waiting.

Whether you want to have a great place for your children to grow up, the choice to keep pets and room for them to roam, you want your family to be safer, or you just want to have control over renovations, now may be the time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could result in significant savings.

If you decide that you are ready to act, find your loan officer and applyapply now.