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May 2017   Volume 43, Number 5      
 

5

Mortgage Volume Increases 3.3 Percent as Borrowers Rush to Beat Rising Rates

As interest rates have increased in recent weeks and home prices continue to balloon, borrowers aren’t wasting any time in applying for home loans. They are hoping to take advantage of current interest rates before affordability gets worse. Homebuyers are also increasingly choosing adjustable-rate mortgages, hoping to save at least some money on their monthly payments.

Total mortgage application volume increased a seasonally adjusted 3.3 percent during the first week of March, according to the Mortgage Bankers Association. The volume of mortgages remained 18 percent lower compared to the same week one year ago. Mortgage applications to purchase homes, which are less sensitive to weekly rate movements, increased by 2 percent and are 4 percent higher for the week than the same week a year ago.

“Mortgage rates increased last week as remarks by several key Federal Reserve officials strongly signaled a March rate increase,” said Joel Kan, an MBA economist. “This was further supported by a few solid economic data releases, including GDP, inflation and manufacturing gauges.”

As homebuyers struggle to afford the home that they want, more people are turning to adjustable-rate mortgage loans, which offer lower interest rates. ARM mortgage applications for the first week of March reached their highest level since 2014.

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In this issue:

12 Surprising Facts about Millennial Homebuyers

Cities Where Over 50 Percent of Millennials Own Homes

Citigroup to Exit Mortgage Servicing Business by 2018

House Flipping Frenzy Returns to U.S. Real Estate

Mortgage Volume Increases by 3.3 Percent as Borrowers Rush to Beat Rising Rates

Survey Shows Smart Home Devices Still in Early Adopter Phase

U.S. Home Prices Hit a 2.5-Year High

Wall Street Eyes Shopping Malls as Next U.S. Credit Crisis

Northeast Has Most New Home Starts

Landscaping Tips to Improve Curb Appeal


 


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