National
Mortgage Rates Up — But Purchases Still Climbing!
For Utah homeowners and soon-to-be homeowners, it looks like the
end for deeply depressed mortgage rates. Nationally, rising rates have
temporarily created a downdraft in home loan applications.
According to the Mortgage Bankers Association, mortgage
applications fell 4% in the first week of July after plummeting 11.7% the week
before. ‘The Market Composite Index’ is the measure of mortgage loan application
volume — and it decreased 4.0% from a week earlier (on a seasonally adjusted
basis). Altogether, national mortgage
applications so far this July are about a third below their level of a year
ago.
The drop in applications comes as no
surprise to those of us who keep a steady watch on mortgage rate trends. But
there is one accompanying fact that wouldn’t have been as predictable. As USA
Today notes, “Despite the rise in rates…the four-year average for home
purchases continues to climb since it turned upward in November 2011.”
So what do these apparently contradictory stats mean for Utah residents preparing to sell or buy a
house?
Whichever part of the equation you fall into, it’s
certainly time to get moving! If you’re
considering selling, you will want to put your home on the market to take
advantage of the still historically low mortgage rates in Salt Lake City and Beyond. It’s
often the case that rising mortgage rates spur a last-minute home-buying rush.
If you’re planning on buying in Utah,
rising mortgage rates are a pretty good indication that it’s time to put the
pedal to the metal.
Either way, if you’re thinking of buying or selling in Salt Lake City and Beyond this summer,
I’m standing by to lend a hand. Give me a call to discuss the full picture —
including the latest price movement in area neighborhoods.
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