2017 Mortgage Applications
2017 Mortgage Applications: Early Updates
In the time since the Presidential Elections, a lot of interesting items have transpired including the stock markets exploding to record levels, mortgage rates increasing, and new limits for Conventional Loans have been established by Fannie Mae and Freddie Mac. Even though demand hasn’t suffered too much from rising mortgage rates, the early results from 2017 Mortgage Applications are a big drop-off in applications to start the new year. In the last two week, there has been a decrease of 12% in mortgage applications for borrowers looking to purchase a home, while at the same time, refinance applications dropped by 22%. In terms of home purchasing, the rate of applications is still up over the last 2 months, but those gains are slowly diminishing as mortgage rates have risen.
In the time since the Presidential Election, the rise in mortgage rates can be seen due to the fact that people believe that President-Elect Trump has pledged tax cuts, regulation reform, and a huge investment in infrastructure spending by the government which should kick-start economic growth. Doing so will should promote gains of the treasury yields higher and in doing so pushes mortgage rates higher. Since growth will be stimulated by other means than homes, then the rational answer would be if spending is to be had elsewhere, there is less reliance on mortgages and home purchases.
2017 Mortgage Applications: Options For Borrowers
When you are faced with a situation of 2017 Mortgage Applications falling and mortgage interest rates rising, you begin to limit the options for the types of mortgages you can afford or really want to lock into at this point in time. There are however a few choices you can make in order to combat these rising interest rates and they are as follows:
- Buying Points: Now this might not be the cheapest way to combat increasing mortgage rates even with the 2017 Mortgage Applications decreasing, but buying points for your mortgage rate just might help you out. If you are a borrower that has the funds available or has access to additional funds to buy down your rate, you could be in business. Since interest rates have risen over 0.50% since the November Election, you would need to purchase between 2-3 points in order to obtain a mortgage rate that you could have received in early November. The bad thing here is points cost 1% of your loan value, so on a $200,000 loan, you would need to spend between $4,000 and $6,000 to get your interest rate back into the 3.75%-4.00% range. Now if you are privileged enough to have this type of cash available even after closing costs or by ways of seller’s concession, you don’t need to necessarily worry so much about your mortgage rate.
- FHA or VA Loan: Another rather simple option is to look into obtaining an FHA Loan and if possible even a VA Loan. As mortgage rates are on the rise FHA and VA Loans are normally some of the lowest rates around when it comes to home purchasing. All the time these loans will constantly be at a lower interest rate than their Conventional Loan counter parts due to the fact that since Government Agencies insure these loans, they will also lend the money at a lower rate. In terms of Conventional Loans, this is where lenders are more careful with who they lend to due to the fact there is a government safety net to insure and protect against defaults.
2017 Mortgage Applications: Conclusion
As you can see the 2017 Mortgage Applications have more affects on the market than just potential borrowers, there is rippling effects seen throughout the industry. If you are looking at the 2017 Mortgage Applications data and want to see where you stand in terms of a home purchase or refinance in the coming months, then you need to call right away at 888-900-1020 or email us at email@example.com.