More Applications for Home Purchase Mortgages in the Beginning of April

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It seems that the spring house buying season has finally started despite the delay. The number of applications for home purchase mortgage loans rose from the last week for March 2014 to the first week of April 2014. This is much anticipated news for both property sellers and lenders, who have already started to offer more attractive deals to home buyers.

The increase in the applications for home purchase mortgages was 3% on a weekly basis. This increase may not seem particularly large, but it is certainly optimistic given that the total number of mortgage applications dropped by 1.6% on a weekly basis. The decrease in the total number of applications is primarily due to the lower number of applications for refinancing.

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The rise in the mortgage applications made by home buyers is a clear indicator that the spring house buying season has officially started. It was delayed primarily due to the colder and longer winter season, but now, as the temperature is getting higher, more people are willing to go out and find their dream home. The forecasts for a major increase in the mortgage rates also made home buyers more hesitant, but since they are currently fluctuating around the same level, confidence has returned. Further increase in the applications is expected as buyers would want to secure the low rates while they can.

Despite the increase in the applications for home purchase mortgages on a weekly basis, their number is still 14% lower compared to the same week of 2013. This can be explained with the annual increase in the mortgage rates of about 1%, the higher residential property prices, which rose by over 11% on average over the past year, and the lower housing affordability in general.

Both the mortgage market and the housing market are expected to overcome the slow down and even to achieve growth in 2014, despite the less than perfect start of the year.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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