Let’s take a glance at the exciting world of Real Estate in America this 2015!
Photo Credits to www.realestatebaguio.com
Have you heard that last March 2015 Mortgage applications for a new U.S. home purchases spike by 17% relatively to the previous month. The changes do not include any adjustment for typical seasonal pattern. This is according to the Mortgage Bankers Association’s latest Builder Application Survey data for March 2015.
We are seeing a really good opportunity in a Real Estate industry that there is an increasing trend in the demand of acquiring a real estate property. This means more people applying for a loan will help the industry to have a high success in realty business.
As per Ms. Lynn Fisher, MBA’s Vice President of Research and Economics “Overall, applications for new home purchases during the first quarter of 2015 increased 20 percent relative to the first quarter of last year. Continued strength in builder applications raises the likelihood that housing starts will be strong over the next few months. Although the March employment report showed a smaller net gain in jobs, job openings are up, wages are beginning to increase more robustly, and mortgage rates remain low, all of which contribute to stronger housing markets.”
Upon checking we can see that the conventional loans compose of 66% of loan applications, FHA is at 20.2%, RHS/USDA loans composed 1.3% and VA loans composed 12.5. This data also proves that the highest percentage of loan application is conventional loan which is made by the federal or state government.
I was also indicated that the MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. It provides the type of loan and buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, this is typically coincident with the mortgage application.
Source: http://www.cnbc.com/id/102335592: And as we go back last January 2015 there is news similar to this. It says that Total volume increased 49.1 percent from the previous week on a seasonally adjusted basis, according to a weekly survey by the Mortgage Bankers Association (MBA) for the week ending January 9, 2015. The jump was fueled by a seasonally adjusted 66 percent increase in applications to refinance, which are now at the highest level since July 2013. Applications for interest-rate-sensitive jumbo refinances more than quadrupled from the previous week.
Source: http://www.cnbc.com/id/102335592: “Purchase application volume was at its highest level since September 2013…and notably increased across most loan size categories, particularly for the conforming, middle of the market loan segments that had been weak for much of the past year,” said Michael Fratantoni, chief economist for the MBA.
There is really a significant increase in mortgage applications and we really need to be ready. Every one of us should be ready in any changes may arise this coming days.
unstoppablejackie 