It was reported that activity in the housing market showed some improvement for the week ending November 4 as both mortgage applications and refinancing activity increased amid drops in rates that have been seen on home loans, and this has given some a positive outlook in terms of how consumers are taking advantage of these low rates, due to the fact that there have also been some concerns that homeowners have not taken advantage of low interest rates that are currently available on mortgages for a variety of reasons. Furthermore, some officials would like to see more activity in the area of home purchases as well due to the fact that homeowners may be in a position to refinance for more affordability but there are still arguments that remain that new buyers are potentially in a situation where an affordable home could be found for almost any price range.
Understandably, not everyone will be in a position to purchase a home but many properties across the nation have seen devaluation and, this fact coupled with low interest rates, can make a mortgage affordable for a wide range of consumers, as lower home prices may be found for those who are looking for starter homes or simply a smaller property, and this along with the potential opportunity to get a lower rate on a home loan could lead to more affordable payments and the likelihood that new buyers would be able to afford their home on a more long-term basis.
Obviously, affordability and missed payments have been an issue that some still struggle with as homeowners are still finding that making mortgage payments, in some cases, is troubling as modifications are still being sought out and homeowners are looking for ways to avoid a foreclosure or financial distress that may lead to bankruptcy. Unemployment and other personal issues in the lives of these homeowners have usually been the source of problems that homeowners are seeing in terms of being able to pay off their debt but of course there are some consumers who are simply worried about their future, in terms of their job stability or the housing market, which have led to some being hesitant to purchase homes.
While the Mortgage Bankers Association stated that mortgage applications increased by 10.3% for the week ending November 4 and the refinancing index increased by 12.1% from the previous week’s report, this is not necessarily a trend that will continue as there have been consecutive weeks that have seen declines in some areas, with positive results that have come from the housing market as well. However, it’s hoped that the ability of new buyers and current homeowners to purchase and refinance may indicate not only more confidence but the financial stability to take these actions and, may indicate that some consumers are on better ground in terms of their financial life and ability to either refinance or enter the housing market.