Mortgage applications are on the rise with a 7% increase year over year. While weekly variations are normal, the overall trend is toward more mortgage applications and a robust buyers' market. This represents a 9-year high in mortgage applications indicating that the home selling and buying market is strong and getting stronger.
Rising mortgage rates appear to be having an effect on refinance applications. Even a quarter of a percent increase has a negative impact on the number of applications that are received, thus the number of mortgages that are worth refinancing.
This same interest increase is not putting a damper on home sales, however. In fact, applications were at their highest levels since April 2010.
One arena causing instability and concern in the lending market is international economies which are slowing and struggling while the domestic market continues to grow in job numbers and GDP.
The prognosis for the spring buyers' market is strong with stable mortgage rates and large inventories in Las Vegas and around the country.
For home sellers, the market should remain favorable. Stable mortgage rates and large inventories should make finding the right home at the right price easier than in the past two years.
Home sellers might find that a bit more patience is required and that they might not get stunningly high prices, but they should make a decent profit on their homes. Prices will continue to rise, but bidding wars are less likely and will not push the sales price as far as it might have a year ago.