This week the Mortgage Bankers Association reported that mortgage application volume is on the rise again, fueled by a hungry buyer’s market. Though housing prices are up and available listings are down, potential homebuyers are not deterred by the tough market. Last week alone, the number of applications rose 2.4 percent currently bringing the number to 6 percent higher than last year. This is a great sign for the real estate market because it shows that consumer confidence is high.
Causes For The Rise In Mortgage Applications
There are several reasons for the increase in mortgage application volume. The first is that it is the peak season for home buyers and so many will be applying for mortgages as they look to buy a home. Secondly, consumer confidence has returned as the job market has stabilized. This is the highest volume of mortgages since the beginning of October 2015 which was a week before the government implemented “the know before you owe rule.” At the time, the mortgage application volume spiked because lenders were concerned that the new regulations would delay the mortgage process, so there was a rush to complete applications.
The Impact Of Mortgage Rates
Mortgage rates have stayed relatively unchanged at 4.23% for a 30-year fixed rate mortgage with a loan balance of $424,100 or less, with points decreasing from .31 to .32 and an 80% loan to value ratio. Though overall, in the last few years, mortgage rates have been increasing in general. The changing rates have not had a dramatic impact on the mortgage volume, and it can be said that the increase is definitely more a product of the housing market recovering as consumers are interested in buying homes again.
What This Means For The Providence Real Estate Market
The rise of mortgage application volume spells good news for the Providence real estate market. It means that sellers are able to quickly move their houses off the market and for a good value. It also means that people are excited to buy homes, so anyone looking to sell should take advantage of this favorable market. The increase in mortgage applications also spells good news for buyers. With more mortgage applications, it means that the economy has stabilized enough after the housing market crash that mortgages are more readily available and at good rates for both banks and buyers. In Providence, the housing market has been on an upswing the last few years, so with the bulk of mortgage applications, it means that the market will continue to see growth this year.
So if you are looking to sell your home, now is an excellent time to consider listing it. Not only are we at the height of the real estate season, there are more buyers on the market right now meaning you can get a great value for your Providence home. If you are thinking of selling, call me today, so I can help you devise the right marketing strategy to take advantage of this rising market.