Falling rates seem to spark a borrowing comeback
Demand for mortgages has been fluctuating but may be showing early signs of a turnaround.
Though mortgage applications declined during the first full week of April, "most of the pullback [came] earlier in the week when rates were higher," says Joel Kan, chief forecaster for the Mortgage Bankers Association.
The MBA says the average rate for a 30-year fixed-rate mortgage fell to 3.27%, the lowest since mid-March. More recent data from mortgage giant Freddie Mac shows 30-year rates have taken a dive to an average 3.04% — a six-week low.
The MBA's most current numbers are from the week ending April 9, when overall mortgage applications fell 3.7%, driven by lower refinance applications. Refi requests fell 5% for the week and were 31% lower than during the same week last year.
But applications for loans to purchase houses slipped by just by 1%, and were up 51% from the same week a year ago, when the pandemic shut down open houses and mortgage offices.
Buyers feel like "they’re getting very close to free money. Our market is still white hot," says Burr.
Mortgage rates remain low by historical standards and that’s played a big role in keeping real estate agents and mortgage brokers busy.
Stop overpaying for home insurance
Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.
Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.
Explore better ratesHow to find a lower mortgage rate
Rising COVID-19 cases and a vaccine setback conspired to push rates down, following weeks of steady increases, says Matthew Speakman, an economist with Zillow.
But don't assume the lower mortgage rates are going to stick around.
"The outlook for rates is likely still upward, barring any additional setbacks for the nation’s recovery from the pandemic," Speakman says.
If you’ve been thinking about refinancing your mortgage, to cut your interest rate and monthly payment, this could be a good time to make a move.
Black Knight, a mortgage data and technology provider, estimated on Monday that 13 million homeowners could still save an average of $283 a month by refinancing their loans.
If you go the refi route, don’t settle for the first mortgage rate offered to you. Be sure to check rates from multiple lenders to find the best deal in your area.
Another way to save on your housing expenses is by shopping around for homeowners insurance. When you buy or renew a policy, compare rate quotes from several insurers to find the lowest price on the coverage you need.
Sponsored
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
