In my ongoing effort to keep everyone who reads my blogs up-to-date with the state of the mortgage industry, I am going to try and dedicate at least a blog or two every week to market trends and factors that are influencing mortgage rates as well as applications as well. Both of these items go hand in hand and can directly correlate to one another. Recently I have been focusing on Brexit and how it affected mortgage rates for a time and if you have read my articles on it, you will know that interest rates took a dip for a few weeks, but were back on the rise almost immediately. Given that information from my last article, it flows into this topic of July 2016 Mortgage Applications Dropping.
Historically speaking, this is still a great time to purchase or refinance on existing home, but you are going to need to ensure that you are acting wisely and don’t get caught waiting before it is too late. To end the month of July, the mortgage applications decreased by double digit percentage on an adjusted basis and the number came in at 11.2% per the Mortgage Bankers Association. The Mortgage Bankers Association is a national association representing the real estate industry and they have over 2,200 company members who are surveyed to get the vitals of the industry. After the survey last week it was indeed showing that July 2016 Mortgage Applications Dropping. The one caveat to all this is that even though July 2016 Mortgage Applications Dropping the industry volume of applications is still up when compared to this time a year ago when rates were significantly higher than they are today.
The one main area that seems to be extremely volatile and driving July 2016 Mortgage Applications Dropping is the volume of refinances that are taking place. As I just mentioned mortgage refinance applications are down and the group of potential people looking to refinance are even more sensitive to rate increases and can decide to pull-out of committing to a refinance easier than purchasers can. Yes, applications in totality are still way up from where they were a year ago but as rates increased last week, potential applicants went down as a result.
There are some other outside factors that have attributed to July 2016 Mortgage Applications Dropping and that is the fact that supply is still scarce and the inventory that is on the market has prices increasing to higher levels than in recent memory. With all these factors added together, it is shrinking the available borrowers and potential buyers of these homes. With being firmly entrenched in a seller’s market, the prices are on the rise and without wages to support it, by default the group of potential buyers has gone away.
If you are confused by the metrics and status of the industry then you need a professional in your corner to guide you through these times and get you on the right path to home ownership or refinancing your existing home. Without any lender overlays, I can get you a loan with just the basic minimum loan program requirements without thinking twice. If you are in the market then you need to call me ASAP and we can go over your situation. Please call me at 888-900-1020, email me at firstname.lastname@example.org, or visit www.loanconsultants.org.