Why Mortgage Applications Decline Despite Historically Low Interest Rates

The last week of August and the first week of September have seen mortgage applications fall 9.5% and 4.9% respectively.  This continuing decline in mortgage applications demonstrates an ongoing strain on our economy despite historically low interest rates.

Because of high unemployment and fear amongst those still employed, many Americans are reluctant to take on mortgage debt.   But the irony is that for those Americans who are still working and have been employed in the same job for a few years, now is a great time to benefit from the REO market.  The combination of unemployment and foreclosures has created a large pool of affordable REO properties that could turn a profit for even an inexperienced investor.

Unfortunately, for many potential REO investors finding financing still offers some challenges due to toughening lending standards. Unless the REO investor is using the property as their primary residence, they may have some difficulty finding affordable financing even if they are a first-time buyer.   As a solution, some REO investors are using nontraditional financing options to buy properties. You can contact MortgageRight to get the lowest mortgage rate possible. Moreover underwriting a loan takes just 4 hours.

But investors should remember that the traditional banks are in the business of lending money, so never assume that you won’t qualify for a mortgage, always look at all your options before pursuing more nontraditional and risky financing opportunities.

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