Fresh Figures Signal Friendlier Lending Environment

New figures being released regarding the housing market are suggesting strong signs of an economic rebound, along with an increased confidence in lenders looking to help current homeowners and new borrowers.

Pending home sales in May were up in the double digits nationwide compared to year-ago levels, according to a report from the National Association of Realtors (NAR). The jump of over 13 percent comes as all-time low average interest rates on fixed-rate mortgages have made it easier for borrowers to grapple with new loan payments.

Sales of new homes in May were at two-year highs, reports NAR, pointing to a recent resurgence in new home construction that hadn't taken place since the housing bubble burst almost five years ago.

Though sales of previously occupied homes dipped slightly in May compared to the previous month, overall sales of new homes have gone up almost 10 percent over the past year. Existing homes on the market are at inventory levels not seen since 2006, before the collapse of the housing market.

Last week the Mortgage Bankers Association (MBA) reported that mortgage applications dipped slightly from levels the week before, though the report noted that the previous week had seen a record surge in applications and that current businesses are still becoming healthier.

Mortgage refinance still accounts for almost 80 percent of all mortgage business, as programs like the government's Home Affordable Refinance Program (HARP) and factors like the record-low average interest rates have made the option more appealing and easier for homeowners.

If you are looking to take out a mortgage on a new home or are considering refinancing a current mortgage, you can discuss which rates and programs you potentially qualify for with the mortgage professionals at New Penn Financial.  

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