Whittier, Ca

 

Mortgage Applications actually rose last month, something they haven't done in a few months following the Fed raising interest rates. This action is causing real estate forecasters to ask themselves...,"Are we looking at a turnaround to this volatile sooner rather than later"??

Mortgage applications rose 1.2% which is it's highest jump since June 24th. In addition the 30 year fixed mortgage rate posted it's biggest decline as it fell to 5.43%. It's believed that the recent spike is due to the drop in mortgage rates. With this, more purchases and refinances were initiated and some concerns over a looming long-term recession were quieted just a little. All this even with the Fed tightening it's belt even further. This good news comes after we saw a massive drop in applications (lowest in 22 years) after the Fed raised rates. 

Overall, Experts say that activity remains lower than last year, but with lower interests rates combined with more inventory of housing, this could lead to a quick rebound in purchase activity. Other's are also optimistic on the future of the housing market. In a statement just released, Bank of America stated that it projects that we could see rates fall from the current 5.3% to 4.5%!! This should provide the market with a bit more balance, something it's needed for sometime now.

Economist Michael Gapen with Bank of America said in a statement, "I don't believe our economic future is as bleak as once predicted. Our recession period should not be as long or painful this time around". Goldman Sachs chief credit strategist, Lotfi Karoui, said that "Even with the overall decline in buyers, I don't see prices going down at all this year".