Different Options for Home Financing in Coral Springs

The New Year is less than a month old. Most people are still trying to fulfill their new year’s resolutions. But there’s already one trend that’s caught the attention of people in the mortgage industry. Mortgage applications have increased nearly 50 percent between the first and second week of January 2015 according to the Mortgage Bankers Association. It’s the strongest weekly gain since November 2008. But what does that mean and how does it affect the local housing market in Pompano Beach?

The recent jump in mortgage applications isn’t just some meaningless statistic. It’s major indicator on the status of the real estate market and the overall American economy. So far, this is a good sign of the housing market in Pompano Beach continuing to grow. The only other statistic that has a bigger effect on national spending is the amount of homes bought.

With mortgage rates down to their lowest levels since May 2013, now is a great time to purchase a home in Pompano Beach. According to Freddie Mac, the rate on a 30-year fixed rate mortgage was down 3.86 percent in December from 4 percent in November and 4.46 percent a year ago. As a result, many homeowners in Pompano Beach are rushing to refinance their mortgages. But what’s causing this trend? According to the Mortgage Bankers Association, it’s due to a healthy national economy. A stronger U.S. dollar and lower inflation are the biggest indicators.

But there’s another positive effect created by lower mortgage rates. The amount of home building jobs have increased by 7 percent this past December compared to a year ago. According to the Federal Reserve Bank of St. Louis, the number of home building jobs reached its peak in September 677,500 jobs, which is the largest number since the end of the recession.

Home refinancing in Pompano Beach is an important decision. Many people choose to refinance their homes at the first sign of a lower rate. But it’s important to understand that timing is everything. With rates at their lowest point since the recession, now is a great time to refinance. But don’t get carried away. Homeowners who choose to refinance too many times, may end paying more for closing costs despite a lower interest rate. If you’re interested in home refinancing, call the mortgage company in Pompano Beach with a track record of getting results. Call the professionals at Ace Mortgage Loan Corp. today.

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