With all eyes on the U.S. election over the past few months, it's unsurprising that other areas have seen a fall in business. Now, the Mortgage Bankers Association (MBA) says that the week ending November 11 saw a 9.2 percent decline in the number of applications for home loans, compared with the previous week.
Though the Market Composite Index dropped by 10 percent, when adjusted for seasonal bias, figures lessened slightly to 9.2 percent. Meanwhile, there was an 11 percent fall in the Refinance Index, drawing the figure down to its lowest since March 2016.
The MBA's president and chief executive, David H. Stevens, said, "Following the election, mortgage rates saw their biggest week over week increase since the taper tantrum in June 2013, and reached their highest level since January of this year." Stevens cited investors' predictions of increased growth and inflation for the rise in rates, which resulted in decreased refinances.
Mortgage rates continue to climb, with the average rate for a 30-year fixed-rate mortgage of $417,000 or less now reaching 3.95 percent from 3.77 percent. Although many potential homeowners might be put off by these figures, rates are still less than they have been. It is essential to look at the wider picture when trying to find a good deal and realize that costs for a home loan have been much higher in the past and could be again in the future. Fixing a deal now before rates grow much further could, as a result, be an opportunity not to be missed.