Regardless if you are looking to purchase a home for the first time or make your fifth home purchase, it is important to always be up to date with the current news in the mortgage industry. Interest rates on mortgages in Burbank are constantly fluctuating, which means you should be familiar with the current trends before you apply for a home loan.
So, to help you get started, Juan Barraza, your local Burbank mortgage lender, has listed the most current news in the American mortgage industry.
According to CNBC, the number of home sales has been drastically decreasing compared to past years. In some of the biggest home buying areas, the number of sales has dropped 5.5% compared to June last year. This could be due to the increase in housing prices.
The number of applicants for first-time homebuyers is dwindling and the mortgage rates are increasing. Mortgage applications have fallen as much as 0.2% in the past week, and 12.6% compared to this time last year. This is all due to the inability to afford the rising interest rates for first-time homeowners.
Labor costs, land costs, and material costs are increasing, which is largely affecting the number of home sales throughout the United States. These rise in costs are mainly affecting home sales that are ranging in the $250,000 price range.
We could see a huge turn in mortgage interest rates in this upcoming month. This depends on the current tariffs. Tariffs can drive mortgage rates either up or down depending on inflation. Tariffs can encourage inflation, which could cause local mortgage interest rates to increase.
If you are looking to purchase a home and obtain a mortgage, talk to your mortgage lender in Burbank for more information on locking in a rate now before they get more expensive.
Keep an eye on the current market trends to get a better understanding of where the prices could head in the near future. For more information on current news in the American mortgage industry, or to apply for your mortgage in Burbank before the rates increase, please contact Juan Barraza at 818-601-2389.