March 2, 2020 —
Interested in buying or refinancing a home? There’s no better time than now!
Acting now to get a mortgage,
save money on your current mortgage payment,
or refinance for a cash-out home-improvement loan
can save you money long term.
According to the Mortgage Bankers Association (MBA), applications for mortgages have increased 5 percent from last week — making the demand for mortgages the highest it has been since spring 2013. The MBA suggests the Coronavirus in China is responsible for a significant (20-point) drop in the 10-year Treasury yield, which has further dropped mortgage rates across the United States.
With mortgage rates continuing to decline, there has been a flurry of refinance applications. In addition, the average loan amounts are higher, and homeowners with jumbo loans are seizing the opportunity to lower their monthly mortgage payments.
Mortgage Facts – March 2020
The good news is that refinance figures alone are up 15 percent — the highest level since in June 2013. The purchase index, on the other hand, fell 10 percent as a result of limited inventory. But we are likely to see an increase in purchase inventory figures as spring inventory emerges. Even as home buyers await new inventory, mortgage applications for home buyers are 7.7 percent higher than they were a year ago.
Data also show an uptick in refinancing, with refinance applications accounting for 64.5 percent of all mortgage activity, a 4-percent increase from last week. Finally, adjustable-rate mortgages account for 5.9 percent of all mortgage applications.
These figures suggest that even with fluctuations in the stock market, home buyers and home owners can benefit from positive trends in the lending market.
The bottom line?
Now is a great time to get a mortgage,
evaluate your current mortgage,
and get cash to improve your home!
Let me connect you with financial services
that may save you thousands of dollars
and help you achieve your real estate
and finance goals.
1. Lloyd, A. Mortgage applications jump 5% to almost 7-year high. February 2020. housingwire.com/articles/. Accessed March 1, 2020.