What the recent mortgage application drop means for you
Posted on Wednesday, September 21, 2016 at 6:41:41 PM
Mortgage interest rates have been at historically low levels in the past year, leading many consumers to either refinance existing loans or apply for entirely new ones. However, several factors appear to be contributing to a negative slide in the mortgage market, as evidenced by the latest data released from one group of analysts.
CNBC recently reported that the Mortgage Bankers Association discovered a 7.3 percent drop in the total number of applications filled out for new and refinanced mortgages in the third week of September compared to the second. According to the news provider, the refinancing portion actually decreased the quickest, but those volumes are still far higher than they were a year prior.
The source noted that interest rates increased to their highest levels seen in the past three months.
Now is still a great time to apply for a new mortgage and refinance an existing one, as interest rates - even after that increase - remain exceptionally low. However, be sure to do so before the end of the year when interest rates are expected to rise a bit more.