The mortgage business has been unpredictable and volatile for the past few years. However, it looks like things are taking a turn for the better. Owning a home is now affordable for 74.6 percent of Americans which is higher than it’s been since the 90’s. In addition, it looks as if more Americans are interested in obtaining a home loan since applications appear to be on the rise. Facts and numbers publicized by the Weekly Mortgage Application Surveys shows that demand increased 1.1 percent after seasonally adjusted while the purchase index also seasonally adjusted increased 1.5 percent during the week ending May 20, 2011. When not adjusted for season, the mortgage application demand increased 0.9 percent compared to the week ending in May 13, 2011.

It appears as if many Americas are also interested in refinancing for various different reasons. More home owners have applied for refinancing recently, numbers increased by 0.9 percent compared to the week ending on the 13th. That is its highest level since December 10, 2010. For a four week period it is up 7.1 percent. As a result, the refinance portion of the mortgage market increased 66.8 percent of the total demand for mortgages. The week before was 66.7% of total demand. Refinancing has not held such a section of the market since late February of 2011.

Many individuals who didn’t get to take advantage of the low rates are waiting for rates to lower again. Refinancing is taking off again. The secondary market however, seems rather dormant.

Refinancing has really taken off recently in the primary mortgage market. On the other hand, the secondary market seems rather stagnant. Many prospective buyers are waiting by anxiously because they may have missed out on the recent historic low rates.

Interest rates are not favorable for buyers at the moment; rates increased for both 15 year fixed rate and 30 year mortgages. When it comes to thirty year mortgages, rates increased from 4.69 percent from 4.60 percent while the 15 year rate inched up to 3.78 percent from 3.75 percent. Points decreased to 0.69 from 0.93 for 30 year fixed and dropped to 1.04 from 1.22 for 80 percent LTV loans.

Sales for single families increased quite a bit; by seven percent actually for April. Experts predicted that around 300,000 would be sold but the numbers rolled in at 323,000. This is the second increase since February when there were a total of 278,000 homes purchased; the lowest number of homes sold in the last fifty years.

Home sales were up in the entire nation. However, sales were still lower when compared to April of 2010; twenty three percent lower actually. During last April there were around 420,000 units sold which was a quick increase and just before the end of a home buyer tax credit incentive. The current average price for a new home is $217,900 which is more expensive $208,300 from the same period last year. The average sales price was $268,900 which is down from the average of $270,500 last year.

Purchase Index figures increased 1.5 percent over the previous week while unadjusted Purchase Index went up 0.8 percent. The numbers were a bit lower during this same time period last year.

Author Bio: Written by Rachel Quinn – Gmac offers fha rates. Check out our mortgage calculator on our site. Brookfield offers New Homes San Diego at great prices.

Category: Real Estate
Keywords: mortgage, new homes, interest rates,