Mortgage applications down 3.5 per cent
The number of mortgage applications for the week ending May 8 were down by 3.5 per cent. The latest data from the Mortgage Bankers Association shows that refinancing loan applications fell by an unadjusted 6 per cent and the share of those mortgages fell to 51 per cent from 52 per cent the previous week. ARM activity increased to 6.3 per cent of all mortgage applications while the FHA
share fell slightly to 13.8 per cent from 14 per cent the previous week. The effective rate of all contract types increased from the previous week.
Parents find home buying stressful; more than half shed tears
Although owning your own home is a wonderful thing, getting there can be the source of great stress. A new report from Zillow and Care.com found that 53 per cent of parents have ended up in tears at least once during the process of searching for and buying a new family home. Half of respondents also said they had fought with a partner one or two times a week during the period. “We know moving with kids can be tough and overwhelming, but what we found most surprising from the survey was that nearly half of parents actually had home-buying regrets,” said Katie Bugbee, global parenting expert and senior managing editor of Care.com. “We discovered several stressors that may lead families to rushed decisions and remorse, and took that insight to create a step-by-step guide to help families plan for a thoughtful, and sane, home-buying experience.” The advice given includes getting to know the neighborhood you want to move to, knowing your ‘deal breakers’ and making sure your mortgage budget is realistic and affordable.
Home improvements top use for home equity accounts
Most homeowners with home equity accounts are using them for improving their homes according to a new report. The study by mortgage lender BMO Harris Bank found that 47 per cent used their accounts for that purpose compared to 22 per cent for consolidating debts and 20 per cent making major purchases such as a vehicle. The report shows that home equity lines are not widely used though. Just 25 per cent of US homeowners have a home equity account or loan. Most (55 per cent) opened it for a specific purpose but have not used it since; 11 per cent have never used it; 52 per cent have never had one.