More Consumers are Applying for Mortgage Loans –Fear of higher rates
Mortgage rates are expected to climb, and more homebuyers are aware of this impending increase and are acting quickly. An article written states that open house visitors has dramatically increased last year. In Indianapolis alone, a real estate agent was dumbfounded when he had over 45 people come over for an open house, when he usually gets 10 on average.
According to a recent statistics, U.S consumer confidence hits its highest levels in more than six years, last month. More and more consumers are thinking of purchasing a home rather than renting.
In fact data from the Mortgage Bankers Association shows that the number of home-purchase mortgage applications has climbed more than 13 percent. And this 13 percent increase is only within the past five weeks — highest point in two months.
The increase of mortgage applications does indicate the overall direction of the housing sector for this year. Consumers are definitely capitalizing on the current low mortgage rate. A mortgage rate of 4.56 percent, or less is definitely a much attractive deal than a 7 percent of more.
“Get it while it’s cheap” is the mentality.
The potential mortgage rate increase is affecting the housing market. Consumers are indeed trying to capitalize on the low mortgage rate. As they should.
Time will tell how the housing market will perform, but for now, it is getting a much deserving boost.
What else do you think could have shaped consumer’s behavior in homeownership in the past months?
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