Mortgage rates saw yet another drop this homebuying season. The latest Freddie Mac survey indicates that the 30-Yr fixed mortgage rate (FRM) is coming in at 4.08%. This marks the lowest interest rate since December 1st, 2016, which also was at 4.08%.In addition, the 15-Yr FRM and the 5/1-Yr adjustable rate mortgage (ARM) also saw declines to 3.34% and 3.18%, respectively.
Despite this information, mortgage applications have actually declined as well.
According to CNBC, "Total mortgage applications decreased last week by 1.8 percent from the previous week, according to the Mortgage Bankers Association. Total volume is down 23.5 percent from the same week last year."
Mortgage Bankers Association's chief economist, Mike Fratantoni, attributes the decline in mortgage applications to "rising geopolitical tensions". This, of course, could be due to national and international reactions to policy decisions made by President Donald Trump.
However, Fratantoni also said that "We do expect a pickup in purchase activity through the remainder of the spring season. With a strong job market and signs of continuing economic growth, we are forecasting roughly 9 percent growth in purchase origination volume for 2017 relative to 2016".
For more information on Cambridge Title Company, call us at 224-330-1886 or email us at info@cambridgetitleco.com.
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