The latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association revealed that mortgage application activity slowed the week ending February 15. Despite the decline in applicants, real estate in Marina Del Rey and other parts of Southern California are more affordable than ever, as mortgage rates have remained low in comparison to last year.
Data from the report revealed that mortgage application volume only fell 0.6 percent from the week before, and the Purchase Index dropped just 1.7 percent. Despite the declines, activity may have been less because of the Valentine’s Day holiday.
Those who already own a home and are looking to refinance made up 77 percent of applications over the last week but the Refinance Index dropped 1.6 percent.
Reports have historically shown fixed-rate mortgages to be more popular amongst those refinancing and buying for the first time. MBA noted that adjustable-rate mortgages only accounted for 4.2 percent of activity seen in the second week of February.
News of increasing home prices throughout the end of 2012 may have many potential home buyers waiting to see if they reduce again, but economists predict prices and mortgage rates to continue improving in 2013.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”