Record low interest rates on mortgage refinance loans have been drawing more buyers to the stalled housing market, new figures suggest. Data from the Mortgage Bankers Association reveals that total home financing applications that includes refinancing and new home purchase loans jumped by nearly 33 % last week.
Existing homeowners looking for a better mortgage payment with a home loan revision made up the most significant proportion of the mortgage applications, at 79 %. With the average mortgage rate on a fixed interest rate 30-year home loanhovering near 4.6 %, it is not difficult to see why people may be looking for a change. However, not everyone who applies for a mortgage these days can expect to be successful as mortgage lenders are seeking higher fico scores and theyr are charging more loan fees on those who do not measure up. Meanwhile, there are also signs that first-time buyers could be coming out of the woodwork as well.
In other mortgage news from the U.S. Census Bureau indicate new home sales increased by 4.7 % in February. That was the first rise in housing sales since July 2008. FHA mortgage applications continued to rise as brokers and wholesale lenders expressed more confidence with 2009 FHA refinance guidelines in underwriting and closings.
