Learning about Current Mortgage Trends in the Market
Learning about Current Mortgage Trends in the Market
Prospective mortgage borrowers looking for mortgage advice will naturally approach the industrial expert for necessary advices. It would be good applying for a new mortgage finance or refinance when it is the appropriate time to do so. Instead of attempting the market it would be the prudent way of approaching the accomplishment of the task.
Learning the Mortgage Market Trends
It is necessary for the prospective borrower to learn about the current mortgage market trends before he or she goes for one. Several factors will come into play when a mortgage is sought for.
* Risk takers may wait till the last minutes to lock low mortgage interest rate; * Most of the borrowers prefer observing the general market trends; * It is therefore necessary to have a look at the current mortgage information to find out the best mortgage; * Informative and educative website offering the latest mortgage news is one of the best bets for the purpose; and * Predicting specific trend in mortgage market is near impossible tasks but a few generalized trends can always be predicted.
Latest Trends in Mortgage Market
Current mortgage market trends as identified by the experts are as follows
* Mortgage rates will continue to rise throughout the year in 2011. * Rate of increase would be around 5-6% overall in the year 2012. * The upward trend started in the third quarter of the year 2010. * At the same time the overall demands for mortgage will decrease. It is expected that the overall demands would be less than $1 trillion. * It is also calculated by the experts that the mortgage refinancing applications will be smaller in number. * It is expected that the rate of decline in application for second mortgage or refinance would be in the range of 40% during 2011 and around 26% during 2012. * Pool of qualified homeowners eligible for mortgage financing will also come down. * Mortgage application for home purchases could be greater in the market. * More and more people will be attracted to jumbo loan mortgages. * Cash purchases will become greater part of the market.
During the years 2009 and 2010 the jumbo loans were in the range of $417,000 for the lower rate mortgages and r9,750 in the higher loan mortgage market. Popularity of jumbo loans is likely to increase during the coming years in 2011-2016.