Mortgage Applications on The Rise

Low Prices, Rates Fuel Surge
A reduction in overall home prices has brought some buyers into the market, as those who could not afford boom prices are having an easier time affording the post-boom prices, despite the recent rise in unemployment rates. Those who are first-time homebuyers are especially eager to take advantage of the $8,000 tax credit before it expires in November.

Those looking for refinancing opportunities are finding the current low rates to their liking, as well. Last week, the 30-year, fixed mortgage rate dipped nearly a quarter of a point from the prior week to 5.15, the lowest it has been in over a month.

As a result, mortgage applications are again on the rise, and the demand is likely to remain throughout the remainder of the summer, at the very least. The government remains determined to keep rates low until the incredible inventory created by this crisis has been handled. It would not be surprising, either, if a similar tax incentive is offered to first-time homebuyers next year, also.

Uvestor Opportunity:
As usual, the suggestion holds that affordable property is ripe for the selling to first-time homebuyers and perhaps even to some people looking to downsize their housing situation.

What may not be as obvious is that those who may like to sell but are having a difficult time should consider refinancing options to reduce the burden caused by unsold properties. If a house once planned to be a flip has turned into a long-term relationship at a higher mortgage rate, investigate your options with your lender. Paying less interest could end up saving money, especially if it turns into a rental until housing prices rise again.