In early January a sharp decline in interest rates, coupled with buzzing announcements to reductions on popular federally-insured home loans, resulted in both purchase and refinance volume at their highest in six years, according to a CNBC report.
After rates dropped in the first full week of the year, total home loan applications almost doubled in the week following. By mid-month, purchase applications were two percent higher than the same time last year, and demand for refinances was at its highest in eight months. According to a Wall Street Journal report, rates on the popular 30 year fixed home loan were at their lowest since May 2013.
Big Housing Announcements
The housing industry was already the talk of the town after the President announced cuts to mortgage insurance premiums on new government-insured Federal Housing Administration (FHA) loans. The reductions will result in more affordable monthly housing payments and provide new opportunities for as many as 2 million borrowers over the next three years.
In other mortgage insurance news, legislation was again passed which makes any payments on mortgage insurance premiums in 2014 tax deductible.
If the housing market continues on its strong start to 2015, we can be sure to see strong and sustained income growth and a significant move upward in the industry!
The Bottom Line
Continued low rates and higher demand for popular first-timer home loans may drive up housing activity. This could be just the time you’ve been waiting for to buy or sell a home.
If you have any questions regarding housing please feel free to contact me. Now is a great time to explore your next real estate transaction.
Tori Denton, REALTOR®