The decrease in home loan applications in May have been due to an increase in home loan rates. However, according to the Mortgage Bankers Association, or MBA, the home loan application volume is still 12 percent higher than it was around the same time last year. The number of people wishing to refinance an existing loan was comparable to those who were trying to buy a loan. Many people want to refinance a loan so that they can lower their monthly payments. Fortunately, there are still refinancing opportunities available.
Home buying Remains Steady
It is estimated that pending home sales are 11 percent higher than they were last year. Pending home sales are also the highest that they have been since June 2013. The demand for homes is greatest in metropolitan areas where the economy is improving. Additionally, there are more traditional homebuyers than home investors. Home prices continue to increase, and they are also selling faster.
The rising cost of homes could be a major burden for many people. Lawrence Yun is the Chief Economist for National Association of Realtors. He has stated that in home prices in some parts of the country are increasing at a rate that is four times faster than wage growth. This can be a problem for prospective homebuyers.
What Is Next?
The home loan rates will still favorable for people who want to purchase or refinance a home. If you have questions about refinancing or getting pre-approved for a loan, then please visit MortgageDepot.com today.