MORTGAGE APPLICATIONS FALL—WHAT DOES IT MEAN?

The Mortgage Bankers Association is reporting that Mortgage Loan Applications fell 19.5% last week. So what does that mean for you?

NOTHING!

Look, first off, no one in the Mortgage Industry expects applications to increase during the month of December. I was once working in an office where literally nobody came to work after the first week of the month. I myself have been known to take 3-4 weeks off. Underwriters are still available, but even the most diligent see their work loads decrease. I can’t tell you how many times I have heard the phrase “let’s talk after the holidays.”

So, for the normal home owner, or would be home owner, what does this mean? Honestly, it doesn’t mean much. Loan Officers expect a slow down, so they aren’t just willing to slash fee’s, and Lenders won’t do much to interest rates that wouldn’t have happened anyway.

My advice, if you are in the market for a new loan, go for it. Don’t let the current pace of mortgage applications sway you one way or another. If you are just starting to consider your options, perfect, this is a great time to do that. If you are in a rush, that is fine to, there are plenty of loan officers who are ready and willing to get that last loan in before the new year.

But please, don’t show up expecting something out of the ordinary, just because it seems like fewer people are applying for a new loan.

Now, if this trend continues through January, then we might have something worth talking about!