The recent decision of the Federal Reserve to lower interest rates had brought to motion a series of predicted economic events in the United States. According to a report from cnbc.com, the volume of mortgage applications has increased as a result which is an indicator of an expanding economy and recovering market.
According to a report from the Mortgage Bankers Association, based on the seasonally adjusted basis ending June 19, the total applications increased by 1.6 per cent week to week. Overall volume is now 10.9 per cent higher than in 2014.
Of the applications, the most rate-sensitive are refinance applications, which rose by 2 per cent for the same seasonally adjusted period. Overall, it is 4 per cent higher than in 2014 , which at the time the interest rates were higher compared to the current rates. As for mortgage applications for home purchases, the current year saw a 1 per cent increase from the previous seasonally adjusted weak, but is 18 per cent higher than the same period in 2014.
This growth in the mortgage applications sector shows encouraging signs of the recovery of the US housing market. According to a report from ft.com, the Fixed 30 year mortgage rates had averaged at 4.19 per cent for the week, which was lower than the 4.22 per cent rate in the previous week. These 30 year mortgage rates is based on the yield on the 30-year US government bond, whose rate fell last week after the Federal Reserve slowed down the rate of increases.
Other factors that identify the return of the housing market include the increase in the volume of new and existing home sales after a slow winter period. The survey conducted to yield the results of US retail residential mortgage applications covered 75 percent of the market, as indicated by the Mortgage Bankers Association. Things are looking up for the market.
