The Mortgage Bankers Association (MBA) reported today that despite applications for new home purchases falling by 18% in November from October, the average size of loans continued to trend higher. The average loan size for new homes climbed to $295,523. The MBA estimates that there were 32,000 homes sold last month, down from 40,000 in October.
Fixed mortgage rates for a conventional 30-year loan dipped slightly last week to an average 4.42%, down from 4.46% a week earlier. However, to obtain the 4.42% rate, a potential borrower would have to pay 0.7 in points and fees. Freddie Mac also reported that the total amount of single-family mortgage debt increased for the first time since 2008. Freddie Mac's chief economist, Frank Nothaft said, "This is a positive sign as it reflects that the pick-up in new purchase-money originations have offset loan pay downs and led to a net increase in principal outstanding."
What does this mean to the average consumer? Well, bottom line is that rates are still ridiculously low, house sales are down so it's still a buyer's market and refinance opportunities are still available for those who haven't done so previously due to low house values, credit, jobs, circumstances... or just plain stubbornness!
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