Are you in the process of purchasing an Atlanta new home? If so, you are in good company! The Mortgage Bankers Association (MBA) announced that number of home buyers applying for mortgages for the week ending Nov. 19 is at the highest level since the beginning of May. “The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.
The MBA survey has been in place since 1990. Covering more than 50 percent of all U.S. retail residential mortgage applications, MBA surveys mortgage bankers, commercial banks and thrifts on a weekly basis.
The Purchase Index showed an increase of 14.4 percent over the previous week, which included Veterans Day. No adjustment was made for the holiday, so the numbers may be a bit optimistic. . . but so are we! Because this is the highest Purchase Index recorded since the week ending May 7, Atlanta Real Estate Forum sees this as a positive sign.
Interest rates are also creeping up, perhaps another positive signal (as long as they don’t go too high). The average contract interest rate for 30-year fixed-rate mortgage increased to 4.50 percent from 4.46 percent, with points decreasing to 0.88 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the highest 30-year fixed rate observed in the survey since the week ending September 3, 2010.
Mortgage applications increasing is a good sign, but in lieu of the mortgage rate increases, if you are looking to buy at the bottom act fast!
