Everyone knew it was coming. Interest rates, which dropped to historic lows last year, were eventually going to start to head in the other direction.
It’s happening.
Even as interest rates begin to move up, the volume of purchase mortgages increased substantially, according to the Mortgage Bankers Association.
Real estate activity shot up by 2.3%, according to the association’s index that measures mortgage loan volume. At the same time, the refinance index fell by a modest amount.
Just earlier this month, the purchase index leaped by 8% when compared to numbers from the prior week. The real estate data continue to indicate that buyer demand is moving forward unimpeded despite higher financing costs.
Mortgage rates are back to pre-pandemic levels, the highest since March 2020, in fact. For a 30-year fixed rate, the increase has been by about 30 basis points in January.
Nevertheless, the real estate market continues to march ahead. Conventional lending led the way and accounts for a bulk of today’s mortgage activity.
Meanwhile, the average size of mortgage loans reached a record high this year. It can be attributed to increasing home appreciation and the lack of housing inventory in the market. Entry-level homes are scarcer than others in today’s market.
Meanwhile, applications for FHA loans, which are designed for first-time buyers, decreased slightly in volume during this period. The same occurred with VA loans.
Whatever type of loan you’re in the market for, Team Roseville Elite can assist. Our loan professionals care deeply about finding the right loan product that fits your unique situation and aligns with your immediate and long-term financial needs.
From a fixed-rate mortgage to conventional lending and refinance programs, our team is here to guide you through the lending process. Our loan experts will work directly with you so you understand each step. We’ll always keep the bigger picture in mind and ensure that your new lending program gets you to your desired financial destination.
Team Roseville offers its clients a variety of loan programs with a range of benefits. Even in today’s competitive market, we will work with you to find your place in it so you can succeed. So, if you’re ready to dive into the real estate market and come out ahead, please contact us today to learn more about our lending programs and how we will work together to achieve your goals.