American consumers may be feeling a heightened sense of safety and soundness in their personal finances, possibly leading an increasing number to pursue affordable loans and homeownership.
The Mortgage Bankers Association reported in its most recent Weekly Mortgage Applications Survey that a seasonally adjusted rise of 4.8 percent was recorded in mortgage loan application volume nationwide during the week ending April 12. The Market Composite Index ticked up by 5 percent week-over-week on an unadjusted basis.
The organization's adjusted Conventional Purchase Index reportedly improved by 3 percent last week, registering at its highest level since October 2009. Meanwhile, a 4 percent rise was observed in the seasonally adjusted Purchase Index, moving the weekly reading to a paramount point not exhibited since May 2010. The unadjusted index jumped 5 percent from the preceding week's figures, representing a level 20 percent above that recorded during the same week the year prior. The Refinance Index saw a weekly increase around 5 percent, which marked the highest reading since mid-January 2013, however, the refinance share of mortgage activity of total applications held firm at a rate of 75 percent.
Popular mortgage products see dips in contract interest rates
The recent uptick in home loan applications may be due to the fact average contract interest rates saw slight decreases during the week, affording individuals the opportunity to lock into a favorable payment plan.
MBA reported contract interest rate averages for 30-year fixed-rate mortgage products with conforming loan balances up to $417,500 saw rates decline to 3.67 percent from the previous week's level of 3.68 percent. Those long-term payment plans with conforming balances more than $417,500 exhibited a small weekly fall to 3.77 percent from the preceding reading of 3.79 percent. Contract interest rate averages for 30-year FRMs supported by the Federal Housing Administration experienced the largest depreciation last week, moving to 3.37 percent from 3.43 percent.
NAR releases information on home buyer trends
In preparation for the start of its largest open house campaign, the 2013 Nationwide Open House, the National Association of Realtors publicized information detailing common traits among home buyers.
According to the organization's recent data, American consumers in the South are the most likely to find housing through an open house than any other region. In addition, real estate property records help illustrate figures associated with mid-income buyers, as those who make between $55,000 and $75,000 are most likely to find their home through an open house. While upper-income consumers regularly visit open houses, fewer find permanent residence through the approach.