Mortgage Applications Increase as the Spring House Buying Season Gains Speed

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The mortgage market experienced a great slowdown during the first quarter of 2014. Currently, the outlook is more optimistic as the number of applications for home loans made by buyers is increasing. This is easily explained with the spring season which traditionally marks the largest number of house purchases during the year.

From the beginning of March 2014 to the beginning of April 2014 the number of home-purchase mortgage applications increased by 13%. This is the highest increase over the past two months. During the winter months the number of people sowing interest in a property was extremely low due to the worst weather in years. Now this number is four times higher on average. As the weather improves, more buyers are willing to make a move on the housing market and this has a positive effect on the demand for home loans.

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Another factor which has led to the increase in mortgage applications made by home buyers is the growing consumer confidence. As the economy is recovering steadily and the number of jobs is increasing (some 192,000 new jobs were created in March 2014), the consumer confidence has hit its highest point in 6 years. When people experience economic stability, they are more likely to purchase homes and other major assets.

The beginning of April 2014 marked a notable decrease in the mortgage rates as well. The average rate fell from 4.5% to 4.375%. This decrease may be minimal but it is good news for buyers who anticipate a rise in the rates. As this time will inevitably come with the Federal Reserve withdrawing its economic stimulation programs, many buyers hurry to secure a lower fixed rate for the term of their loan.

The positive trend in the home-purchase mortgage applications will most certainly remain, at least during the middle of the summer, unless the interest rates increase considerably which is not very likely.

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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