Following the new lender regulations about a month back, it seems weekly swings in mortgage applications have soothed. In fact, in the past week, a decrease of 3.5 percent on application volume was witnessed in contrast to the previous week. And this is a good thing. At present the mortgage market is in a bit of upheaval but this is to be expected. As a potential home buyer what you need to understand is that September was probably the most suitable time to apply for a mortgage since the beginning of 2015. Now with the slight increase in mortgage rates, it will cost you more in the long run to fulfill that lifelong ambition of owning a property.
Likewise, refinancing volumes saw a 4 percent seasonally adjusted fall while home purchase applications dropped by 3 percent. While the mortgage rates have creeped up a little (primary reason for drop in refinancing volume), fact is getting your mortgage application approved in the next few days is a proper possibility. After all, compared to last year’s performance in the same week, there is a significant drop of 23 percent.
What Kind of Rates To Expect?
On an average the interest rate for a fixed mortgage period of 30 years is about 3.98 percent compared to the previous 3.95 percent. Now you may be thinking as to why the mortgage rates haven’t dropped even with the new legislation in place? Fact is, the real estate industry is not specifically governed by the policy decisions taken by Federal Reserve. If anything it is governed by a much more global and broader economic trend. Mortgage rates are long term contracts and hence they are affected at present by the current world trends.