Saturday, March 12, 2011

Mortgage Applications Up 15% & Mortgage Rate Forecast

Courtesy of Matthew Guiro, (MBS) [] Mar 9, 2011 (

Applications for home mortgages jumped to the highest level in three months last week, buoyed by improvements in the job market, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 15.5 percent in the week ended March 4.

It was the highest level since the week ended December 10 and was the biggest increase since June 11.

“An improving job market is beginning to pave the way for an improving housing market,” Michael Fratantoni, MBA’s vice president of research and economics, said in a statement.

We wonder; does this increase also reflect the FHA’s announcement that Mortgage Insurance Premiums will increase .25 of a percentage point effective April 18, 2011?

mortgage rates

Courtesy of


Mar 10, 2011 (

Will rates rise or remain relatively unchanged this week?

Industry experts and analysts provide their insights.

  • 0% of respondents expect rates to fall in the coming weeks
  • 53% predict a further increase in mortgage rates while the remaining
  • 47% forecast that mortgage rates will remain more or less unchanged

So, the question you have to ask yourself is; “Do I feel lucky?” or “Do I understand my window of opportunity may be closing?” Well, DO YOU?

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