Some months ago, individuals were concerned about the increasing rates of home mortgages. Things were going in support of home mortgage lenders. However, now things are going backward and against these home mortgage lenders. In May, the rates on long-term mortgage were dropped constantly for 6 straight weeks.
According to some sources, average mortgage rate on 30 year FRM was slightly decreased from 4.61% to 4.60% during the last week of May that is the lowest figure since last December. 12 months prior to this, the average rate of mortgage interest was 4.84%. The typical interest rate on 15 year FRM was decreased by 0.02% from the figure of 3.80% that was 4.21% last year.
Whilst the ARM is concerned, its average rate was decrease from 3.15% to 3.11%. The typical rate on ARM was 3.95% last year.
While the rates were taking place for these mortgage loans, the application for the mortgage loan went up by 1.1% according to some home mortgage lenders. On the other hand, those people who have borrowed mortgage loans made a decision to refinance them for them to take full advantage with this opportunity. For this reason, the percentage of refinancing activities on mortgages was increased from 66.7% to 66.8% recently. While the application for home purchasing was increased by 1.5%.
As if it was not enough, the rates on mortgages fell again on the past day of May. This created the lowest average rates on mortgage that has never been seen before. Chicago mortgage rates This record breaking fall in average rates was a serious blow to many home mortgage lenders. For many cities it had been the lowest figure in last eight years, while for others it had been lowest since the season 2000. Some experts have even said this slump is worse than it had been in great depression era.
This double fall in average rates in addition has raise the percentage of foreclosures recently. Experts have said this percentage will continue to increase as there are likelihood of more falls in average rates in future. It has also been seen that numerous home buyers are now going for rent houses due to the persistent decrease in value. They are concerned that doing investment on something that is decreasing in value provides a loss to them. Not merely them, but many home mortgage lenders will also be concerned about the ongoing future of home mortgage system.
Some reports have stated that even some major metropolitan cities of US have now been hit by this slump, except Washington. Many of these cities are now experiencing rise in foreclosures and refinance. This slump is a huge heaviest blow to all or any the house mortgage lenders around the US.