Posted by Valerie Tutor on Sunday, September 13th, 2015 at 7:27pm.
A number of U.S. homeowners have been capitalizing on the recent stock market turmoil: For the week ending Aug. 28, mortgage applications ticked up 11.3 percent versus a week earlier, according to the latest Mortgage Bankers Association (MBA) report.
Refinances soared 17 percent to high their highest level since April.
"You had some borrowers looking to refinance who really took advantage of the short availability of very low rates," says Mortgage Bankers Association (MBA) Chief Economist Mike Fratantoni. "You had a number of people following the market very closely."
The stock shake-up triggered by the Chinese economic slowdown resulted in moments of low interest rates on 10-year U.S. Treasury notes - a key benchmark for the mortgage-lending sector. Analysts, though, warn that the surge in home-loan activity tied to a particularly volatile period in the stock market will likely not last, especially with the Federal Reserve preparing to hike inteerst rates sometime later this year.
Nevertheless, many economists insist that a steadier trend in the housing recover is underway.
"We do not expect that improvement in the house market to continue," Fratantoni says. "Job growth and declining unemployment rate and wage growth - those are really the factors that we focus on."
Source: Florida Realtors
I am a true Florida native and proud of my heritage growing up in South Florida on an 80 acre cattle ranch only two hours from Sanibel. Since the early 1960s, my family loved to spend our free time on Sanibel and Captiva, so I pretty much grew up here. After living and working all over South and Central Florida, my husband and I were thrilled to be able to move home to Sanibel Island.READ MORE