The Mortgage Bankers Association reports that consumer demand for home loans increased by 1.1 percent. More Americans are interested in obtaining their own home. New Homes San Diego offers beautiful new homes in San Marcos and Chula Vista.
Refinancing has also increased quite significantly. Refinanced mortgages went up 0.9 percent in contrast to the week ending on the 13th. As a result, the refinance portion of the mortgage market increased 66.8 percent of the total demand for mortgages. The week before was 66.7% of total demand. There have not been this many refinances for quite some time.
The Purchase Index for mortgages also increased. Adjusted for season, it increased to 1.5 percent over the previous week while unadjusted Purchase Index went up 0.8 percent. Last year's numbers were much lower. Numbers for the current year are 3.1 percent higher than last years numbers.
Interest rates have also changed quite a bit, let's examine the changes. The 30-year rate moved to 4.69 percent from 4.60 percent while the 15 year rate crept up to 3.78 percent from 3.75 percent. Points decreased to 0.69 from 0.93 for thirty year fixed and decreased to 1.04 from 1.22 for 80 percent LTV loans.
So, regardless that rates ticked higher somewhat, they are still at six month lows. This seems to follow early predictions about 2011. On the other hand, the demand for loans have not increased as expected.
Analysts say that the numbers show that we are in a "mini-refinance boom in the primary mortgage market." However, these same analysts are saying that there is little movement in the secondary market. Analysts say that mortgage seekers missed on low rates in October and early November but do not want to blow it again. So it is said that there is a lot of pent up demand.
Analysts also explained that the larger percentage of the mortgage market being in refinancing is due to actions by the U.S. Housing and Urban Development Department's that ended Federal Housing Administration (FHA) streamlining and increased Mortgage Insurance Premium (MIP) fee last year. This has caused many existing FHA clients from meeting net benefit rules.
Single home families sales increased quite significantly; up by seven percent to be exact. Record numbers were reached in April with 323,000 homes sold in total. This is higher than what most experts predicted; analysts expected the numbers to fall around 300,000.
The nation saw a higher number of sales in general. Annual rate sales are a different story though; they decreased by twenty three percent. Sales then were 420,000 units, which was a pre-crash peak and just before the end of a home buyer tax credit incentive. Median sales price for a home was $217,900 which is up from $208,300 from the same period last year. The median sales price was $268,900 which is down from the average of $270,500 last year.
Home buyers were better able to afford a home because about three-quarters of all homes were sold to families with earnings at the national median income during the first quarter of the year. Analysts say that 74.6 percent of all homes sold in the country were affordable to a family with an income of $64,400. This is said to be the highest in two decades. It also marks the ninth quarter in a row in which the affordable home price bettered 70 percent. It is said that this number did not often go higher than 65 percent. Analysts say that this is due to "historically low" interest rates. Still, these analysts say that the market is experiencing "extremely tight credit conditions."
Analysts add that despite homes being more affordable, home sales are still underwhelming due to tight mortgage credit. It is said that lenders are demanding strong credit histories and large down payments. In addition, buyers appear to be holding back expecting home prices will decline. The nation's least affordable housing was in the New York City region (including White Plains, N.Y. and Wayne, N.J. Other cities with least affordable homes included the San Francisco-San Mateo-Redwood City area and Los Angeles-Long Beach-Glendale and Santa Ana-Anaheim-Irvine, California areas.
Refinancing has also increased quite significantly. Refinanced mortgages went up 0.9 percent in contrast to the week ending on the 13th. As a result, the refinance portion of the mortgage market increased 66.8 percent of the total demand for mortgages. The week before was 66.7% of total demand. There have not been this many refinances for quite some time.
The Purchase Index for mortgages also increased. Adjusted for season, it increased to 1.5 percent over the previous week while unadjusted Purchase Index went up 0.8 percent. Last year's numbers were much lower. Numbers for the current year are 3.1 percent higher than last years numbers.
Interest rates have also changed quite a bit, let's examine the changes. The 30-year rate moved to 4.69 percent from 4.60 percent while the 15 year rate crept up to 3.78 percent from 3.75 percent. Points decreased to 0.69 from 0.93 for thirty year fixed and decreased to 1.04 from 1.22 for 80 percent LTV loans.
So, regardless that rates ticked higher somewhat, they are still at six month lows. This seems to follow early predictions about 2011. On the other hand, the demand for loans have not increased as expected.
Analysts say that the numbers show that we are in a "mini-refinance boom in the primary mortgage market." However, these same analysts are saying that there is little movement in the secondary market. Analysts say that mortgage seekers missed on low rates in October and early November but do not want to blow it again. So it is said that there is a lot of pent up demand.
Analysts also explained that the larger percentage of the mortgage market being in refinancing is due to actions by the U.S. Housing and Urban Development Department's that ended Federal Housing Administration (FHA) streamlining and increased Mortgage Insurance Premium (MIP) fee last year. This has caused many existing FHA clients from meeting net benefit rules.
Single home families sales increased quite significantly; up by seven percent to be exact. Record numbers were reached in April with 323,000 homes sold in total. This is higher than what most experts predicted; analysts expected the numbers to fall around 300,000.
The nation saw a higher number of sales in general. Annual rate sales are a different story though; they decreased by twenty three percent. Sales then were 420,000 units, which was a pre-crash peak and just before the end of a home buyer tax credit incentive. Median sales price for a home was $217,900 which is up from $208,300 from the same period last year. The median sales price was $268,900 which is down from the average of $270,500 last year.
Home buyers were better able to afford a home because about three-quarters of all homes were sold to families with earnings at the national median income during the first quarter of the year. Analysts say that 74.6 percent of all homes sold in the country were affordable to a family with an income of $64,400. This is said to be the highest in two decades. It also marks the ninth quarter in a row in which the affordable home price bettered 70 percent. It is said that this number did not often go higher than 65 percent. Analysts say that this is due to "historically low" interest rates. Still, these analysts say that the market is experiencing "extremely tight credit conditions."
Analysts add that despite homes being more affordable, home sales are still underwhelming due to tight mortgage credit. It is said that lenders are demanding strong credit histories and large down payments. In addition, buyers appear to be holding back expecting home prices will decline. The nation's least affordable housing was in the New York City region (including White Plains, N.Y. and Wayne, N.J. Other cities with least affordable homes included the San Francisco-San Mateo-Redwood City area and Los Angeles-Long Beach-Glendale and Santa Ana-Anaheim-Irvine, California areas.
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