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.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind.
Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal.
Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances.
While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.