Mortgage interest rates recently dropped to the lowest percentage in nearly a year. As a result, homebuyers throughout the country have rushed to take advantage of these new rates. Not only have mortgage refinance applications increased throughout the past two weeks, but also those for home purchases.
After weeks of application decline, refinance applications have risen 9 percent. According to the Mortgage Bankers Association’s (MBA) latest report, last week’s total refinance volume made up nearly 51 percent of all mortgage applications - that’s the highest refinance volume since January. Despite the fact that this number remains significantly lower than last September’s number of refinances, industry experts predict that the number would be higher had Hurricanes Harvey and Irma avoided the United States.
“To illustrate the impact of the two major hurricanes over the past two weeks, mortgage applications for the state of Texas ran about 25 percent lower than the state’s weekly average for the year to date, reflecting the impact of Hurricane Harvey,” reported Joel Kan, an MBA economist. “Additionally, in the most recent week we saw mortgage applications in Florida fall 48 percent lower than its 2017 weekly average, as many residents evacuated in anticipation of Hurricane Irma.”
In addition to an overall national increase in refinance applications, home loan applications rose 11 percent for the week. Although it is normal to see an increase in applications for a home purchase after Labor Day, this surge is seven percent higher than this time last year.
With the Fed predicted to raise interest rates in December, it’s a great time to consider refinancing or purchasing a home. For more information about mortgage applications, or to learn more about home financing, contact one of our mortgage specialists today.