According to reports by the Associated Press applications for mortgage loans declined by 1.5% last week.  This may be in part due to the interest rates climbing slightly from the fantastic lows of recent times.

The Mortgage Brokers Association reported a 3.1% decline in refinance applications.  The good news is that the same period saw a 6.3% increase in applications.  Since the mortgage business is about 82% refinance over purchase loans, their overall net is a decline.  Applications to refinance loans made up about 82 percent of all home loan activity, down from nearly 83 percent a week earlier.  The numbers are adjusted for seasonal factors.

Rates have been at or near the lowest level in decades since spring as investors have shifted money into safer Treasury bonds.  That has lowered their yields, which mortgage rates tend to track.  The average rate for a 30-year fixed loan rose to 4.5 percent from 4.43 percent a week earlier. Rates on the 15-year fixed-rate mortgage, a common refinancing option, increased to 4 percent from 3.88 percent.

The Mortgage Bankers Association’s survey covers more than 50 percent of all applications nationwide.

I believe this is a good sign for our industry as a whole however.  While investors may be looking at other streams for income, the buyer’s confidence is increasing.  As the confidence level increases, our market will stabilize, correcting itself.  As the market corrects itself, more confidence is gained, refinances are again considered, and the investor’s attention is returned to real estate backed loans.

Are you considering a refinance?  Maybe you owe more than the current market says your home is worth?  There is help right now!  Email or call us at 530 315-2808 to find out how.

FREE home warranty; FREE move-in assistance; FREE home security system; MORE!  To learn more visit Yuba Sutter Homes and Loans.  Call 530 315-2808 or email us now to get started on getting the most value for and from your investment.