Mortgage Rates Up: Mortgage Applications Down!
National Mortgage Rates Up — But Purchases Still Climbing!
For Albuquerque homeowners and soon-to-be homeowners, it looks like the end for deeply depressed mortgage rates. Nationally, rising rates have temporarily created a downdraft in home loan applications.
According to the Mortgage Bankers Association, mortgage applications fell 4% in the first week of July after plummeting 11.7% the week before. ‘The Market Composite Index’ is the measure of mortgage loan application volume — and it decreased 4.0% from a week earlier (on a seasonally adjusted basis). Altogether, national mortgage applications so far this July are about a third below their level of a year ago.
The drop in applications comes as no surprise to those of us who keep a steady watch on mortgage rate trends. But there is one accompanying fact that wouldn’t have been as predictable. As USA Today notes, “Despite the rise in rates…the four-year average for home purchases continues to climb since it turned upward in November 2011.”
So what do these apparently contradictory stats mean for Albuquerque residents preparing to sell or buy a house?
Whichever part of the equation you fall into, it’s certainly time to get moving! If you’re considering selling, you will want to put your home on the market to take advantage of the still historically low mortgage rates in Albuquerque. It’s often the case that rising mortgage rates spur a last-minute home-buying rush. If you’re planning on buying in the Albuquerque, rising mortgage rates are a pretty good indication that it’s time to put the pedal to the metal.
Either way, if you’re thinking of buying or selling in Albuquerque this summer, I’m standing by to lend a hand. Give me a call to discuss the full picture — including the latest price movement in area neighborhoods.