Morning Briefing: Refis pull down mortgage apps again

by Steve Randall05 May 2016
Refis pull down mortgage apps again
Mortgage applications for the week ending April 29 dropped 3.4 per cent from a week earlier as refinance loans weighed.

The Mortgage Bankers’ Association reported a 6 per cent drop for refi loans with the purchase index down 0.1 per cent (seasonally adjusted) and 1 per cent lower (unadjusted).

The share of refinance loans was down to 52.9 per cent of total mortgage applications in the week; it was 54.4 per cent in the week prior. 
 
Mortgages deemed less important than car purchase
Although for most of us a home is the most expensive purchase we will ever make, it seems that researching a car purchase ranks lower than finding the right mortgage.

A survey by Zillow found that Americans spend 8 hours on average researching their home loan but 11 hours researching their next auto. They will also get just 4 quotes from mortgage lenders. Buyers spend as much time looking for their next vacation as they do finding a mortgage.

While they may be the ‘want it now’ generation, millennials actually spend longer finding the right mortgage than Gen X or Boomers and are more likely to shop around for their home loan than older buyers.
 
These cities highlighted for foreign real estate investment
Three US cities have been highlighted for growth of foreign investment in commercial real estate. A report from law firm DLA Piper expects Austin, Seattle and Miami to perform best in the next 12 months as investors seek strong returns and move away from high prices in ‘gateway’ cities such as New York and San Francisco.

''Despite some concerns by industry leaders, the survey shows that US commercial real estate is viewed by many as a source of strength or, at least, a place of calm and long-term stability amid tumultuous global markets,'' said Jay Epstien, co-chair of DLA Piper's Global Real Estate practice. ''It will be telling to watch how the next six months unfold as real estate executives position themselves to address a whirlwind of opportunities, risks and disruptions facing the US and global markets.''

Chinese investors are expected to be particularly active followed by those from the Persian Gulf and Canada.

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