According to Mortgage Professional (URL: http://nationalmortgageprofessional.com), mortgage applications are falling like the Fall apples from the trees at over 13% from just the previous week ending September 6, 2013. But this rate included adjustments for the Labor Day Holiday and a measure of the total mortgage volume. On an unadjusted basis the fall was 23 percent.
Refinancing has decreased by 71% from the peak as of May 3, 2013 and is at the lowest level since 2009. ARM’s and HARP applications were somewhat unchanged at around 7 percent of total applications.
The average interest rate for 30 year fixed rate mortgages increased to 4.8 percent from 4.73 percent and is expected to reach 5 percent by the end of 2014. The fifteen year mortgage rates increased to 3.83 from 3.75 for 80 percent loan to value contracts.
The overall expectation is that home sales will increase slightly in the last part of 2013 with refinanced loans decreasing. But as interest rates rise through 2014 the refinanced loans will continue to plummet at a fairly fast pace since most of the home owners wanting to refinance have already done so. However the total mortgage originations will decrease by nine percent from 2012 to $1.6 trillion.
Many Notary signings have decreased by as much as 70% since its peak in May and they are beginning to adjust to the hit by switching to field inspections and other jobs to supplement their income.