Home Loan Demand Rises.
Many publications and web-sites have cited an increase in the demand for home loans, specifically refinances. This is most likely caused by one of 2 reasons. First, rates have trended down over the past few months with speculation that they will remain at their current levels. Second, there are a great deal of ARMs (adjustable rate mortgages) that are hitting the adjustable portion of their loans. In a majority of those cases the adjusted rate is going to rise so the borrowers are looking to lock into a lower fixed rate.
Whatever the reason it bodes well for many consumers that rates are low and will hopefully remain low. First-time home buyers are also going to benefit from this low rate trend.
