This week mortgage rates fell slightly to 7.12%, yet still this was not enough to prevent mortgage applications from plummeting to a 28-year low. The mortgage industry has greatly suffered over the past few months due to economic uncertainty driven by the pandemic. Even with an increase in rates, the incentives for customers to seek a new mortgage loan have greatly decreased.
Mortgage related indicators have indicated that the market is simply not attractive for customers at this moment in time. FICO scores for applicants are increasing and lenders are offering fewer and fewer loans with higher than the average rates. This, combined with lower sales prices, increased competition from many lenders, and the ongoing economic unpredictability, has caused the lowest mortgage application rate in almost 30 years.
Main Points:
• Mortgage rates dropped slightly this week, but not enough to increase mortgage application
• Economic uncertainty driven by the pandemic has caused a decrease in mortgage applications
• FICO scores have been increasing and lenders are offering fewer loans
• Lower sales prices, competition from many lenders, and ongoing economic uncertainty have caused the lowest mortgage application rate in almost 30 years
You can read this full article at: https://www.housingwire.com/articles/housing-market-stuck-as-mortgage-rates-remain-above-7/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
