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First time Home Buyers Mortgage Program

Charles D'Alessandro of Fillmore Real Estate interviews a mortgage professional. The question is what does a first time home buyer do to ...

Homebuyers fuel jump in mortgage applications, as more listings finally emerge

Mortgage applications to purchase a home jumped 7 percent for the week and were 8 percent higher than the same week one year ago. Potential homebuyers have been blocked by a severe shortage of homes for sale this year, but more listings have been coming on the market. While total supply is still lower than a year ago, this is, perhaps, the first sign that the supply crisis may be beginning to ease.

“Even though inventories continue to decline, they are doing so at a slower pace. In other words, while buyers continue to see fewer homes available for sale, the decline was smaller than we've seen in previous months,” said Danielle Hale, chief economist for “Before we see inventories increase, we need to see them slow, and the data has shown four months of deceleration (smaller year-over-year declines)."

There is still, however, far more demand than supply, and if the economy continues to improve, that demand will grow.

“The strong job market continues to bolster demand for homes,” said Mike Fratantoni, chief economist at the MBA.

Weekly mortgage applications fall sharply as potential homebuyers drop out

Affordability is clearly weakening. Purchase applications were just 1 percent higher compared with a year ago, when mortgage rates were significantly lower.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.84 percent from 4.83 percent, with points decreasing to 0.42 from 0.48 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.

“Concerns over trade between the US and China persisted last week. This caused Treasury rates to decrease 5 basis points over the week,” noted Joel Kan, an MBA economist. “And, these concerns outweighed positive news on housing starts and a generally bullish view on second quarter US growth.”

Applications to refinance a home loan, which are more rate-sensitive, also fell, down 4 percent for the week and off 27 percent compared with a year ago. Homeowners today are less likely to refinance, even if they want to take cash out of their increasingly equity-rich homes. With mortgage rates more than a full percentage point higher than the record lows of the last few years, they are more likely to take out a second, home equity loan and preserve the low rate they have on their primary mortgage.

What are the best first time homebuyers mortgage programs today??

Lots of programs designed to assist with the goal of a home purchase.

Try a local mortgage broker, shop online such as Washington Mutual, Countrywide and make some comparisons.