Though the summer homebuying season has drawn to a close, housing activity in the Queen City might not see too much change in the coming months, as conditions continue to ameliorate and offer those looking to buy a house in Charlotte ample opportunity to do so. As interest rates decline across the county, the local residential sector could see an uptick in sales in the coming months, as an increasing number of mortgage applications have been submitted recently.
During the week ending Oct. 31, fixed mortgage rates decreased for the second consecutive week, moving to the lowest levels observed since June, according to Freddie Mac's latest Primary Mortgage Market Survey. Average 30-year fixed-rate mortgages were seen at 4.10 percent, down from 4.13 percent the preceding week. Meanwhile, 15-year FRMs averaged 3.20 percent last week, slipping from the 3.24 percent noted the previous seven-day period.
Frank Nothaft, vice president and chief economist for the government-sponsored enterprise, said the second straight week of declines was likely due to anticipation of the Federal Reserve's monetary policy announcement on Oct. 30.
"The Fed saw improvement in economic activity and labor market conditions since it began its asset purchase program, but noted the recovery in the housing market slowed somewhat in recent months and unemployment remains elevated," said Nothaft. "As a result, there was no policy change which should help sustain low mortgage rates in the near future."
Adjustable-rate mortgage products saw mixed activity
In addition to the dips in fixed-rate mortgages, Freddie Mac reported that five-year treasury-indexed adjustable-rate mortgages recently moved down week-over-week, but one-year products actually saw an increase.
Those for five-year ARMs was observed at 2.96 percent, down from its reading of 3 percent the week prior, according to the lending giant. As the same time, though, one-year ARMs averaged 2.64 percent, which was an increase from the 2.60 percent seen the week before.
Home loan rate activity sees sizable increase in applications
Due to the dips that occurred in FRMs and 5-year ARM in past weeks, a number of individuals interested in purchasing property recently started down the path to homeownership.
In the week ending Oct. 25, mortgage loan application volume increased 6.4 percent on a seasonally adjusted basis from the preceding seven-day period, according to the Mortgage Backers Association. The national organization's latest Weekly Mortgage Applications Survey showed a 9 percent uptick in the Refinance Index, as well as a 2 percent improvement in the Purchase Index, compared to a week ago.
Additionally, the MBA announced the refinance share of activity jumped to its highest reading since June. Last week, 67 percent of total applications were for loan modifications, 2 percent higher than the previous period.
These developments may continue to be seen in the coming weeks, as many consumers decide now is a good time to enter the market. Those looking to purchase luxury homes in the Charlotte area can benefit by enlisting the assistance of Lodestone Real Estate. This trusted local agency has helped countless residents transition to homeownership, and offers unbeatable customer service to each of its clients.