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 2022 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.
When you are faced with a situation of 2022 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:
As you can see the 2022 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 2022 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 firstname.lastname@example.org.