The rollercoaster that is mortgage applications saw the final days of May 2017 close on a down note and that’s likely due to a shorting in available housing to purchase, according to recent news reports.
CNBC reports that U.S. mortgage applications were down 3.4 percent for the week ending May 26 compared to the previous week. The recently released information, which was pulled from Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, comes on the heels of a climb of a little over 4 percent and a drop of about the same amount the week before that. According to Abby Shemesh, CEO and founder of Amerinote Xchange, these fluctuations – not to mention the seasonally-adjusted index that’s 14 percent lower than it was this time last year – means it’s a seller’s market for those looking to sell their mortgage note.
“It’s a simple premise, really,” said Shemesh. “If there are no house to buy, then there’s no need for a mortgage. What we can offer you is the best price for current mortgage holders looking to avoid the ebbs and flows of the stock market — which ultimately affect your principal payments and interest.”
Amerinote Xchange offers mortgage holders a quote in exchange for their note after putting it on the secondary mortgage market. If the holder accepts the offer, then the note holder will relinquish the document in exchange for a fast and fair cash payment.
The MBA’s chief economist also told CNBC that current home sale prices are three times greater than the current rate of overall inflation. The report adds that despite the climbing asking price of homes on the market, demand for properties remains strong. What’s driving the drop in homes available for sale wasn’t immediately clear, however a trade journal predicted in late 2016 that this year would be a year of “slowing” and “moderate” growth in the wake of the November 2016 presidential election and a “changing composition of home buyers.”
The Housing Outlook
To Shemesh, this outlook is one more reason for mortgage holders to shake off the burden that is mortgage payments. As the Federal Reserve previously predicted a rise in interest rates in 2017 and beyond, it may be time for those tired of throwing good money after bad to look under their own roof for relief.
Abby Shemesh of Amerinote Xchange is currently available to discuss this topic in more detail. Please send all media queries to Greg Adomaitis at email@example.com.