King Hou Lam, Home Mortgage Consultant

Direct LenderHelp You Shop & Qualify for the Best Deal

NMLS #1877010, CA DRE #01855205
General Mortgage Capital Corp.,
NMLS #254895, DRE #01509029
1350 Bayshore Highway #740, Burlingame, CA 94010

Mortgage Rates and Loan Volume:

Mortgage rates continue to move within a narrow range. Right now, there appear to be few if any forces that will create pressure for rates to move in one direction or another. The job market is inching its way back with hirings increasing and layoffs decreasing.

More and more cities and states are easing restrictions on the entertainment industry. New York, which has had some of the nation’s tightest Covid restrictions, just announced that venues like theaters and playhouses would be permitted to reopen with very limited seating later this month.

Typically, with all of this positive news, you would think mortgage rates would increase. As of now, the Fed continues to restate that they are not even thinking of raising Fed Fund rates, so the likelihood that mortgage rates will rise significantly anytime soon is extremely low.

However, the slightest movement in mortgage rates will have an immediate impact on loan applications. Mortgage rates hit a three-month high last week. (For perspective, that means rates are up only a 1/8th to a 1/4%) With this increase, mortgage demand for refinancing declined 4%. Applications for home purchases dropped by 5%. To be clear, the mortgage and housing market remain very strong even with these declines.

Applications for home purchasing is 17% higher than at the same time last year. Refinances are a whopping 46% higher than a year ago.

The Housing Market:

It seems that the number of buyers entering the market is increasing. Many real estate professionals are reporting an increase in buyer activity. Many experts would expect potential buyers to put the brakes on home purchasing with interest rates creeping up.

What seems to be happening is the opposite. It appears that buyers are concerned about missing out on home purchasing at low rates and are looking to get in now before it’s too late. Many would-be purchasers are not thinking about the future, which will ultimately stabilize or come down when mortgage rates rise.

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me if you have any questions.