There has been a reduction for those applying for home loans in spite of the fact that interest rates are low. Refinancing of mortgage property is also on a downward trend. While loan seekers declined by 4.4 percent the people applying for refinancing went down by 5.9 percent. Refinancing is sought by home owners who cannot pay off their mortgage loans in the stipulated time.
This trend could be due to the efforts by the Obama administration to improve the housing market. The marketing home affordable scheme which has been announced will put home mortgage loans under close scrutiny. The government intends to get tough on companies which give out loans on home mortgages. As a result of the reforms, home owners who paid off their loans in the stipulated time have increased. The increase of consumers who paid off their home loans in time has been two percent.
This trend has been indicated through bank surveys which are conducted every week. The statistics from mortgage bankers and commercial banks are taken into account while doing this survey. However, an estimated 78 percent of home loan seekers still go in for refinancing on their mortgage property.
Trends also suggest that there could be a rise in the interest rates. There was a tenth of a one percent increase than the earlier week. Those who got loans with the assurance to pay back within 15 years were also charged higher. While there was an increase from 4.05 to 4.12 percent in this regard while the rate of adjustable rate mortgage also increased slightly.