Last week, the middle of the month in August marked a detrimental and monumental week in real estate history. Homeowners were able to breathe easily after there was a humongous rush when it came to people refinancing their home. Because of this, mortgage applications dropped approximately 0.9 percent last week compared to the previous week, and while it’s still seventy percent higher than the previous annual mortgage applications, the refinancing market has been taking its toll on the industry.
The average interest rate for a 30-year fixed mortgage ended up decreasing about three percent, and this was the average while points on most home loans still had an unchanged origination fee when it came to lending for a twenty percent down payment.
Mortgage applications to refinance however ended up increasing 0.4 percent, but compared to last year, that’s a hundred and eighty percent higher when the rate was normally higher.
Economic growth has been the major factor that is being considered to drive the U.S. Treasury yield lower on a 30-year basis. So while the refinance only saw a minor increase, it was still at its highest level since July two years ago.
Most of the mortgage applications that have been seen in the past week is about 63%, which is the highest amount that has been seen since the fall of 2016.
Low rates still don’t offer very much incentive to home buyers, and while the amount of finance applications happen to majorly decreased 4 percent, they’re still 5 percent for the year.
Unfortunately, though, homes are getting harder to find, especially on the bottom of the market, as prices for houses still are high – therefore, lower mortgage rates still haven’t helped them to be more affordable yet.