Loan Applications Increase Before An Anticipated Spike Takes Place Next Week
Soon-to-be homeowners who want to get a handle on their future wealth need to act now before a much anticipated big spike in interest rates takes place next week.
March 19, 2017 /MarketersMedia/ —
Since last week, mortgage applications experienced a sudden spike with homeowners rushing to lock their rates before the rates get too high to lock. The next Fed meeting scheduled to commence tomorrow (the 15th of March) is said to be followed by a rise in rates to strengthen the economy as was revealed in the Fed’s last minute report. So, a lot is on the line for homeowners this month.
Just last week, mortgage and refinance applications rose by 3.3 percent and 5 percent, respectively. This was when rates were 4.08 percent for 30-year fixed rate mortgages.
The mortgage climate of last week is expressed in this article: Mortgage Rates for March 2017.
Today, the rates increased 7 basis points for 30-year mortgages and refinance loans to 4.15 percent and 4.16 percent, respectively. 15-year fixed-rate mortgages increased 8 basis points to 3.28 percent. And the numbers are anticipated by 80 percent of experts and Fed officials to leap again in the third week of this month, sending America’s prospective homeowners in droves to the lenders and banks.
Marni McMillan from Denver’s VIP Mortgage says that these rates are still “amazing” in light of America’s history not too long ago. But reminds soon-to-be buyers that they shouldn’t wait too long before rates impending spikes in rates. Even a seemingly small rise of 5 basis points can pile $30,000 on top of a $250,000 house.
How things will transpire for the country largely depends on a recent development brought forth by poor credit scoring homeowners. Known for their 3 percent to 5 percent money down options, FHA-backed loans are gaining an upsurge of popularity among low-income mortgagors. The problem emerges out of lenders that aren’t banks with less stringent eligibility requirements for such loans. Although experts are only theorizing, there is a growing consensus that this could lead to another housing bubble and crash.
How things will unfold in terms of the country’s economic power, it’s too early to tell. But one thing is for certain: anyone who wants to own a home must act now as there’s no telling when rates will decrease to more comfortable levels. Tomorrow’s Fed meeting should shed more light on the matter.
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Source: MarketersMedia
Release ID: 177565
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