The share of borrowers applying for an adjustable-rate mortgage is the highest it’s been in 15 years, a new analysis by Zillow has found, but unlike the lead-up to the subprime mortgage crisis, these borrowers remain well-qualified.
Rising mortgage rates are sidelining many would-be homebuyers. But there are two ways to meet the challenge.
Even as mortgage interest rates hit levels not seen since the fall of 2009, early indications show America’s prospective homebuyers appear to be adapting, not quitting the market.
With lower down payment and credit requirements compared to other mortgages, FHA loans have been a key resource for first-time homebuyers. But during the economic crisis caused by the coronavirus pandemic, investors have raised their criteria for purchasing these loans.
While many financial institutions have seen success originating loans guaranteed by the U.S. Department of Veteran Affairs and Federal Housing Administration, the products face competition and challenges from rising home values and similar products created by other entities.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.3 percent on a seasonally adjusted basis from one week earlier.
Freddie Mac reported yesterday 2018 began with mortgage rates down slightly from both the previous week and the same week last year.
Mortgage applications decreased 2.8 percent from two weeks earlier, according to data released today by the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Dec. 29.
The average mortgage interest rate moved up 6 basis points to 3.94 percent, the highest it has been since July of this year, according to the Federal Home Loan Mortgage Corp.
Mortgage applications decreased 6.2 percent last week from the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 23, 2017. The Refinance Index decreased 9 percent from the previous week.
Mortgage rates dropped into the low 4 percent/high 3 percent range last week and applications ticked up as a result, according to the Mortgage Bankers Association’s latest report.
Rates for 30-year fixed-rate mortgages inched lower for the third consecutive week last week and set a new low for 2017, according to a statement from Freddie Mac.
