High affordability continues to boost mortgage application activity – Santa Monica Real Estate
While current homeowners are making the most out of record-low mortgage rates, first-time buyers who want to snatch up homes for sale in Brentwood and the surrounding areas may be turning in more applications.
The Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 27 shows application activity increased 0.2 percent from the previous week, as housing market factors continue to benefit both buyers and sellers.
On an unadjusted basis, the Market Composite Index also increased 0.2 percent from a week ago, while the Refinance Index jumped 0.8 percent to its highest level since April 2009.
Homeowners nationwide continue to utilize low mortgage rates for lower monthly payments, as data shows the refinance share of mortgage applications represented 81 percent of all activity, up from last week.
Additionally, the seasonally adjusted Purchase Index fell around 2 percent from the week before and the unadjusted Purchase Index was also down.
Home sales are generally slower in the summer, but higher home prices have prompted more homeowners to list their properties, while low mortgage rates provide high affordability to buyers. Mortgage applications could drop in coming months as rates are expected to increase before 2013.