Mortgage applications tank

Mortgage applications tank.

USA – The Columbus Day holiday may have closed some lending offices, but rising interest rates are more likely the culprit for weakness in the mortgage market.

Total mortgage application volume fell 7.1 percent for the week, according to the Mortgage Bankers Association’s seasonally adjusted report.

Volume was 15 percent lower compared with the same week one year ago.

Mortgage applications to refinance a home loan, which are highly sensitive to even the smallest rate moves, fell 9 percent for the week and were 33.5 percent lower than a year ago.

Whether you want to sell your residential property or buy a new real estate investment, a house or an apartment, Property Angels is here to help you find your next home.

Property Angels – Attorney Realtor Partner

Rates have moved 22 basis points higher in the past four weeks and have jumped 96 points in the past year. With fewer borrowers now able to benefit, refinance volume, which had been the majority of mortgage business following the recession, fell to 38.1 percent of total applications from 39 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since February 2011, 5.10 percent, from 5.05 percent, with points increasing to 0.55 from 0.51 (including the origination fee) for loans with 20 percent down payments.

Categories:

Treasury rates increased over the week, mainly as communication from Federal Reserve officials pointed to a continued path of rate hikes, based on the strength of the economy and hot job market, said Joel Kan, an MBA economist. Furthermore, four out of the five rates tracked in our survey increased.

Mortgage applications to purchase a home also fell sharply, down 6 percent for the week. They were 2.5 percent higher compared with the same week one year ago. Home buyer demand is strong, but affordability was weakening even before rates began to rise, as tight supply pushed home prices sharply higher. The combination now of high prices and rising rates is clearly throwing cold water on the heat in housing earlier this year.

Mortgage bankers meeting at the MBA’s annual convention this week expressed concern about shrinking volume and shrinking profits, but the association’s new CEO, Robert Broeksmit, had a brighter outlook.

Well of course I’m concerned, but I’m optimistic because the economy is so strong and the millennials are out buying houses and the demand is so high.

We do have to work on the supply side, said Broeksmit. I think what you’ll see is as the rates continue to tick up, home price appreciation, the pace will slow, and there will be an equilibrium over time.

Author – Diana Olick

Original publisher – CNBC

Did you know? Your Property Angel offers you an all inclusive service whereby you will receive legal advice, sales and purchase solutions as well as the entire transfer process.

Get your real estate selling or buying process going on the right track today. Your Property Angel will then call you back either the same day or the next business day.

Simply complete the basic online form so that your Property Angel can call you for a brief chat.

Your Property Angel will highlight all the benefits and then you will fully understand why Property Angels is the smartest way for you to sell or buy your next residential property.

Property Angels is an online property portal that promotes residential property for sale across South Africa. You can buy, sell, list and find South African properties online. Find houses for sale in Johannesburg, Cape Town and Durban which are the three biggest cities in South Africa.

At Property Angels we will help you sell or buy your next house or home so that you can move on quickly and affordably.

Traditional Estate Agents do offer good service but you want so much more when it comes to selling or buying your next home.

Some of the top property companies online in South Africa include Private Property, Property 24, My Property, Property Fox, PropertyCoZa, Remax, Pam Golding, LeadHome, SA Hometraders, Gumtree and Property Angels.

Whilst most online property brands offer online visibility for Estate Agents South Africa, Property Angels offers online visibility for Attorney Realtor Agents South Africa.

Whether you have a property for sale or you are seeking a house to buy in the southern suburbs, Northern Suburbs, Eastern suburbs or Western suburbs, choose Property Angels as your attorney realtor property website in South Africa. Sell your property online through Property Angels.

Your dedicated Attorney Realtor will call you back today or the next business day.

Whether South Africa is in a buyer’s market or in a seller’s market, contact Property Angels today for quick and efficient online and face to face service.

List your house for sale with Property Angels. You can also find property to view, property selling tips and many other useful property and finance blog articles and property products bespoke to your needs. Buy and sell your private residential property through Property Angels. Allow Property Angels to become your chosen property website portal for your choice of homes to sell and homes to buy.