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Mortgage Rates Rising, Mortgage Applications Decreasing, Home Values Level Off
Mortgage rates begin an upward march as mortgage applications for refinancing a home purchase both show declines. Last month home values showed a positive sign as the average median price actually rose.
Mortgage rate averages for both the 30 year and 15 year fixed mortgages rose more than 0.25 percent from last week. The average for the 30 year fixed rate mortgage now sits at 6.04 percent which is up an astonishing 0.30 percent. The average for the 15 year fixed rate mortgage rose a whopping 0.33 percent during the week and now stands at 5.6 percent.
Mortgage applications are down an overall of 14.2 percent with refinance applications falling 20.2 percent and purchase applications falling just 6.4 percent. FHA mortgage applications also fell this week by 2.7 percent.
However, FHA applications have risen 148 percent since last year. More and more lenders are turning to FHA mortgage programs from the government as banks are reluctant to lend money. As lending institutions continue to raise the bar on credit standards, FHA mortgage will like become the standard as these mortgages are backed by the government.
The National Association of Realtors (NAR) reported that home sales continue to decline but the median home value actually rose last month. Home sales are down 19.3 percent from the 6.11-million-unit pace recorded in March 2007. The average US home price, for the first time in about a year, rose to $200,700 in March from $195,600 in February.
If the median home value continues to increase this spring, it may be a great year for home sales and a strong sign that economy is gaining traction.
Submitted by admin 4/24/08
Sources: Mortgage Bankers Assoication
National Association of Realtors
Mortgage rates begin an upward march as mortgage applications for refinancing a home purchase both show declines. Last month home values showed a positive sign as the average median price actually rose.
Mortgage rate averages for both the 30 year and 15 year fixed mortgages rose more than 0.25 percent from last week. The average for the 30 year fixed rate mortgage now sits at 6.04 percent which is up an astonishing 0.30 percent. The average for the 15 year fixed rate mortgage rose a whopping 0.33 percent during the week and now stands at 5.6 percent.
Mortgage applications are down an overall of 14.2 percent with refinance applications falling 20.2 percent and purchase applications falling just 6.4 percent. FHA mortgage applications also fell this week by 2.7 percent.
However, FHA applications have risen 148 percent since last year. More and more lenders are turning to FHA mortgage programs from the government as banks are reluctant to lend money. As lending institutions continue to raise the bar on credit standards, FHA mortgage will like become the standard as these mortgages are backed by the government.
The National Association of Realtors (NAR) reported that home sales continue to decline but the median home value actually rose last month. Home sales are down 19.3 percent from the 6.11-million-unit pace recorded in March 2007. The average US home price, for the first time in about a year, rose to $200,700 in March from $195,600 in February.
If the median home value continues to increase this spring, it may be a great year for home sales and a strong sign that economy is gaining traction.
Submitted by admin 4/24/08
Sources: Mortgage Bankers Assoication
National Association of Realtors