Purchase Activity Expected to Rise in 2013

By
Real Estate Broker/Owner with Hawaii Dream Realty LLC RB-19372

Historically low mortgage rates, with 30-year fixed-rates remaining close to 3.5 percent, maintained refinance activity near a peak level through the end of 2012.  The refinance share of applications rose gradually throughout 2012 to end at the highest level of the year at 82.9 percent of all applications in December. Refinance application demand is largely a function of mortgage rates.  However, many borrowers in the past few years had incentive to refinance, but were unable to qualify given the lack of equity in their homes.

 

The Home Affordable Refinance Program (HARP) allowed borrowers with existing loans backed by Fannie Mae or Freddie Mac to refinance regardless of their current loan-to-value ratio, so long as they had been current on their loan over the past year.  FHA runs a similar program to help existing FHA borrowers use a streamline refinance to access current market rates.  Together, these programs have led to the highest levels of refinancing activity in some of hardest hit markets. 

 

The home purchase market has also improved over the past year.  Compared to last year, the average loan size for purchase applications has been higher across all loan types, indicating widespread growth in home prices.  Moreover, the pace of purchase applications has been running about 3 percent above the national level last year. 

 

Despite the surge in refinance activity in 2012, Mortgage Bankers Association expects that refinancing will taper off in the coming months as the economy continues to recover, rates to increase and that purchase applications will continue to increase slowly in 2013 as home price appreciation improves and home sales gather pace. This appreciation is already being realized in Honolulu. As all real estate is local, particular areas of Honolulu have seen list prices increase by 32.13%. Check it out for yourself  http://www.exitrealtyhonolulu.com/mimarket/zip/96815/

 

The above refiance information was provided by Mortgage Bankers Association. To view the entire article, visit http://mba-erm.informz.net/mba-erm/archives/archive_2109111.html



 

Posted by

Aloha and Mahalo,

Theresa Harden
Principal Broker e-PRO, SFR, Realtor

Direct: (808) 223-0429
Office: (808) 735-2221
Toll Free (866) 800-7250
Windward Oahu (808) 234-5880

eFax: (866) 405-4274

Skype: theresa.harden
Oovoo: hawaii_realtor

EXIT Real Estate Associates
Waikiki Sales Office
2463 Kuhio Ave. C1
Honolulu, Hawaii 96815

Search for Oahu Real Estate For Sale www.ExitRealtyHonolulu.com

Oahu Property Management Services www.OahuRentalServices.com

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Hawaii Honolulu County
Groups:
EXIT Relocation Network

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
2,216,440
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

We are seeing increased purchase activity here in Silicon Valley.

Feb 07, 2013 03:57 PM #1
Rainer
18,170
Simon Webster
CRE Credit Services - Plano, TX

That is good news for everyone.  Hawaii must be an awesome place to sell real estate, but I imagine it is much different than anywhere else!

Feb 07, 2013 04:00 PM #2
Rainer
171,615
Mike Warren
Real Estate - Colorado Springs, CO

Great news. Thanks for sharing this information. 

Feb 07, 2013 04:33 PM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
392,294

Theresa Harden

PB SFR e-Pro Realtor
Ask me a question...
*
*
*
*
Spam prevention

Additional Information