February Foreclosures, Mortgage Rates & Loan Applications

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Mortgage loan applications increased during the first week of March, as people took advantage of low mortgage rates, according to the Mortgage Bankers Association. The data included both home purchases and loan refinancings. The bankers' mortgage application index increased to 723.4, a rise of 11.3 percent from the preceding week.

Meanwhile, in New York City, an auction of 375 foreclosure properties attracted homebuyers and investors looking for bargain-priced units. The units were easily sold as they were priced much lower than their original price levels.

The rising loan applications, the increased sales of foreclosures and the low mortgage rates may be good indications of some recovery in the housing market. But they still point to the severity of the problem of foreclosures across the country.

The data for foreclosures in February is a letdown. As researched by foreclosures.com, there were 121,756 completed foreclosures in February, an increase of 67 percent from January. When foreclosures declined by 26 percent from December 2008, hopes were kindled. The February figure has again dashed hopes.

But President Obama's Home Affordable initiatives against foreclosures may yet be the spark. The rise in mortgage applications indicates a positive response to the launching of the initiatives as the jump in the index occurred after the details of the program were released. The low levels of mortgage rates have also enticed potential homebuyers to finally make their purchases after waiting for conditions that favor home buying.

Mark Goldman, real estate professor at San Diego University, said mortgage rates are at their most attractive levels, potentially lifting mortgage loans, home sales and demand for housing supply. He said even if the mortgage rates are moving up and down, they are hovering around the lowest levels in U.S. financial history.

What is significant, as Goldman stressed, is the effect of the rate levels on consumer confidence. Finally, they have overcome their fear of the uncertain and of foreclosures and have taken the step to choose a home and apply for mortgage loans.

Rates on fixed-rate 30-year mortgage loans have averaged 4.96 percent during the week, a decline of 0.18 percentage point compared to the previous week. The 4.96 average is just 0.07 higher than the 19-year record low of 4.89 percent, which was reached on January 9, 2009.

About the Author:
Joseph Smith has been educating buyers on the finer points of foreclosures purchase at ForeclosureDeals.com for over ten years. Click here to visit and read more advice on finding Tax Foreclosures.



Article Originally Published On: http://www.articlesnatch.com


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