According to multiple industry sources, mortgage rates have reached the highest point in recent months, and may continue to rise. This news may prompt those who have been waiting to refinance or purchase to take action now.
Recent months have seen a reduction in residential mortgage applications. There are varying speculations as to the reasons for this decline in applications:
Residential Purchase Mortgage Applications posted the largest increase since early July, which many sources say is a result of increased inventory and slightly reduced mortgage interest rates.
Many people working in the real estate and mortgage industry, as well as those considering buying or selling real estate, are watching the news and reports on expected changes from the Federal Reserve.
CNBC conducted a survey and share the results in this article written by Steve Liesman for CNBC:
The mortgage loan market has had shifts over the past couple months with an up this week, down last week pattern. Within that pattern is statistics that show refinance volume has slowed while first time home buyer applications have increased.
Surging home prices and strong demand caused a three month reduction in single family homes sales, but this trend was reversed with a small 1% increase in July.
It is well known that home sales and mortgage loan statistics have reached and surpassed historic performance. With a variety of sources for how these statistics are tracked, it can become confusing to understand.
The Adverse Market Fee is defined as a 0.5% fee added in 2020 to refinanced mortgage loans backed by Fannie Mae and Freddie Mac (about 70% of all home loans). It was charged to lenders and usually passed on to homeowners through closing costs, as an addition to their loan amount or by a raised interest rate.
Mortgage loan applications for new home purchases dropped 9 percent in April 2021, and it was the third straight month of reduced application volume.
If you’ve found yourself confused by recent headlines relating to mortgage interest rate, you are not alone! When reliable sources report contradictory information, even the leaders in the industry are left scratching their heads.