Mortgage applications surge to begin May
May 8 2013 2:10PM
With mortgage rates falling to or near all-time lows, sellers of real estate in Los Angeles might begin to see more offers on their homes.
According to the Mortgage Bankers Association, total mortgage application volume increased 7 percent in the week ending May 3. Both purchase and refinancing activity jumped from the previous week.
The Purchase Index rose 2 percent to the highest level since May 2010, while the Refinance Index jumped 8 percent.
The driving factor behind the surge in mortgage applications has been affordable interest rates. According to Freddie Mac, 15-year fixed-rate mortgages hit a new record low in the week ending May 2, while 30-year FRMs edged closer to the all-time low set in November 2012.
"Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast," said Frank Nothaft, vice president and chief economist at Freddie Mac.
As long as mortgage rates continue to remain near all-time lows, home buying activity could pick up in Santa Monica.
