Mortgage Applications Rise as Interest Rates Fall
Mortgage applications are on the rise as interest rates fall. Even though mortgage interest rates are more dependent on the 10 year Treasury note than on the Fed funds rate, interest rates are still quite low. And many people are filling out mortgage applications in order to get in on the savings.
First time homebuyers
First time homebuyers can get great mortgage interest rates right now. A 30-year fixed rate is available for well under six percent. This means that you could save tens of thousands of dollars over the life of your loan. Variable rates are even lower, but at some time they’ll go back up. Now might be a good time to lock in a good mortgage interest rate.
With home prices down a bit, and with many homeowners eager to sell, now is definitely a buyer’s market. If you are looking to buy, you can find good deals in terms of home prices and in terms of mortgage interest rates. However, you should be planning to keep the home for a while, beating the current downcycle.
Refinancing to a fixed rate
The increase in mortgage applications is probably most popular among those wishing to refinance. Now is a good time to refinance. It is possible to get rid of your adjustable rate mortgage and replace it with a fixed rate. This might be especially helpful for subprime borrowers who are expecting a mortgage reset. If you’ve managed to bring your credit up to snuff, and you don’t have negative amortization, it could be a good idea to refinance.
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mortgage applications, interest rates fall, first time homebuyers
