Getting a Gulf Shores mortgage is going to cost more throughout 2014, mainly because it's hard to imagine they could have cost any less last year.
Gulf Shores mortgage rates hit what is now known as an historic floor in 2012, with rates back then bottoming out at around 3.38 percent. Rates remained in the 3's through the first half of 2013 before rising above 4 percent in June, and it doesn't look like they're going to be going back anytime soon, if ever.
The Mortgage Bankers Association is expecting Gulf Shores mortgage rates to increase above 5 percent in 2014, and then increase to 5.5 percent by the end of 2015.
Will Gulf Shores Mortgage Rates Impact Home Sales?
It's no shock to anyone that Gulf Shores mortgage rates are going up. The questions going forward will be how the higher rates will impact home sales and whether lenders can make enough from purchase loans to offset the drop in refinance activity. Rising home values should help keep refis from rolling completely off the table, but it doesn't look good for those in the mortgage industry.
Mortgage applications increased slightly last week from the previous week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week.
The refinance index increased 11% from the prior week. The seasonally adjusted purchase index increased 12% from a week ago, but is at a level similar to what was observed in mid-November 2013.
Gulf Shores Mortgage Rates Getting Buyers Off the Fence?
Many real estate professionals believe the rise in Gulf Shores mortgage rates may boost home sales.
It will get people sitting on the fence to decide, "We better do something or it’s going to cost us money." Most people realize the [3 percent-range interest rates] are gone, and they'd better be happy to get 4.5 percent now.
Time will tell. But stick with us here and we'll keep you updated on Gulf Shores mortgage rates. We post periodic updates about Gulf Shores mortgage rates and the news that affects those rates at our Gulf Shores Mortgage Info link to your right under Gulf Shores Real Estate Categories.