In March of this year the mortgage bankers association released its weekly applications survey which shows that mortgage applications have declined by 54 percent in the last year.
What’s the cause for the decline in mortgage applications?
According to the mortgage bankers association much of the decline in mortgage applications can be attributed to the decline in refinance applications which have seen a drop by 65 percent year over year.
Mortgage Applications Down By 18 Percent Nationwide
When we take an even deeper look at the mortgage numbers we can also see that mortgage applications as a whole are down by as much as 18 percent compared to one year ago and even though this decline in mortgage application activity isn’t really news to many economists, it does lead us to wonder where the demand for new mortgages will come from in the future.
Home Equity May Be the Solution
The answer to the question of “where will the demand for mortgage loans come from in the future?” may come from home equity.
As with the housing boom in the mid 2000’s we saw many homeowners in Bend and across the United States borrow against their mortgages and get home equity loans.
This could be the scenario that we see again as more homeowners across the United States finally have equity in their homes to make home repairs, additions or use the equity to do other things that will improve the quality of their lives.
No Incentive for Homeowners to Move?
What’s really interesting about the current mortgage industry is that with mortgage interest rates still the lowest that they’ve been in the last 30 years (4.5%) it’s unlikely that we will see many homeowners refinance or move in the near future.
What does this mean for you if you plan on buying a home in Bend or elsewhere in the United States?
Great deals are still out there and you will be able to find the home of your dreams but it will take an experienced Realtor to help you with your home search.
To learn more about the Bend Oregon Real Estate market contact me today by calling (541) 383-1426.