Mortgage applications rise, purchase apps lead
Mortgage applications were up for the week ending September 9 according to the latest Mortgage Bankers’ Association data.
Its index rose 4.2 per cent on a seasonally adjusted basis but was 17 per cent lower on an unadjusted basis. Purchase applications saw the largest gain, up 9 per cent (adjusted) while refinance loans increased 2 per cent.
The share of refinance loans decreased to 62.9 per cent from 64 per cent a week earlier.
Meanwhile, unadjusted data for mortgage applications for new homes in August saw strong gains from July and compared to the previous August.
"Applications for new home purchase mortgages were up in August on an unadjusted basis following a sluggish July," said Lynn Fisher, MBA's Vice President of Research and Economics. "New home purchase applications increased 5 percent over the month and increased more than 14% compared to August a year ago. Based on the applications data, our estimate of seasonally adjusted new home sales for August reached 601,000 sales, the highest level observed in our survey since it began in 2012.
Uptick for mortgage rates ahead of the Fed
The Fed meets next week with the highly-anticipated answer to the interest rate question. With bond yields increasing, mortgage rates are edging higher with an average 30-year FRM hitting 3.50 per cent this week compared to 3.44 per cent a week earlier.
Freddie Mac’s Primary Mortgage Rate Survey also shows that a 15-year FRM averaged 2.77 per cent, up from 2.76 per cent last week; a 5-year ARM averaged 2.82 per cent, up from 2.81 per cent a week ago.
This is the first week since June that mortgage rates were above 3.48 percent, snapping an 11-week trend," said Freddie’s chief economist Sean Becketti.
Ditch the speckled granite worktops say experts
Kitchens with speckled granite worktops are unlikely to impress today’s homebuyers according to research from Zillow Digs. Neither will dark brown wood or short cabinets.
"Homeowners today want an open and thoughtfully designed kitchen that blends seamlessly with the rest of the home's design aesthetic," says Kerrie Kelly, Zillow Digs home design expert. "From hidden appliances to beautifully painted cabinets in complementing colors, homeowners want their kitchen to be stylish enough for entertaining, yet welcoming and functional for everyday use."
The real estate firm’s top trends for kitchens in 2016 reveal that two-tone or tuxedo style cabinets, hidden appliances and wood paneling are the most attractive modifications that buyers love.