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Applications for brand-new house purchases increased from March to a total amount of 5 percent (an increase of 3,000 applications) in April, according to the Mortgage Bankers Association.
Mortgage rates are on the decrease, however not for long
Mortgage rates have actually seen a substantial dip within the last month, and are currently at a six-month low. Now, mortgage rates are at their lowest because November of 2013. The drop in mortgage rates, combined with a record low unemployment rate of 6.3 percent across the country, is most likely the reason for a boost in mortgage applications.
Nationwide, a 30-year fixed-rate home mortgage fell to about 4.21 percent, according to Freddie Mac. It’s also noted that by paying one price cut point (which is a fee that can be paid to reduce the interest rate on a home loan) a home buyer or someone looking to refinance can get a home loan rate in the three to 4 percent variety.
(Note that home loan rates aren’t anticipated to drop any lower past May, according to The Home mortgage Reports.)
Inventory and the average price of homes are on the rise
The National Association of Realtors reported a total of 1.99 million houses for sale at the end of the first quarter this year, an increase of 3.1 percent from 2013. Housing sales in basic have fallen to 4.60 million as of the first quarter of 2014, house sales were at 4.93 million during the first quarter of 2013. Severe weather conditions in the Northeast and Midwest affected the sales of homes this past winter season.
The typical home in the United States sold for 8.6 percent more this year than in 2013. In the first quarter of this year a single-family home cost a typical price of $191,600, up from $176,400 from the very first quarter of 2013.
Distressed house sales are likewise below in 2013, revealing indications that even more house owners are able to afford their monthly payments on time. Foreclosures and short sales just accounted for 15 percent of sales in the very first quarter of the year, compared with 23 percent in the first quarter of in 2013.
If you’ve been considering buying a home, or refinancing your current loan, now is the perfect time. Benefiting from the rates being offered can assist you lock in a low rate to conserve money throughout the life of your mortgage.