One of the most interesting aspects of the Miami real estate market that people easily tend to overlook involves mortgages and the rate at which people apply for such loan options. According to recent data, mortgage rates within the region are working their way down; however, the number of people who are seeking such financial assistance seems to be dropping as well.
If you happen to be someone who is interested in being able to purchase a condo unit or a single-family home within the region, it helps to understand what mortgages are, especially if you are someone who is in need of financial assistance. We have created an easy guide to help you understand what mortgages are and how they relate to the Miami real estate market.
What are Mortgages?
Basically, a mortgage is a loan which is provided to property buyers who are in need of financial assistance with regards to their Miami real estate purchase. Over time, the borrower will be required to pay back the loan which will be inclusive of the amount of money borrowed along with interest and any other incurred fees.
In the event that the borrower becomes unable to make the necessary payments, they become candidates for foreclosure unless action is taken to prevent further action.
The Current Situation
As of the first week of July, the total number of applications made for home loans has gone down by 2.1 percent. Applications for new mortgages loans have increased by 3 percent; however, refinancing has also dropped by 3 percent which essentially brings the total application number down.
As far as the average interest rate is concerned, mortgage loans for a 30-year fixed-rate agreement have dropped by 7 basis points to 3.79 while jumbo loans have dropped by 4.5 percent.
Many will feel that the lower interest rates will most likely influence property buyers to consider obtaining mortgage loans and being able to take advantage of the deals on today’s Miami real estate market, especially since all factors indicate that the property market is indeed on the rise. However, applications prove otherwise as people do not seem too eager to consider going for financial assistance.
What Is Causing the Decline?
Aside from the fact that many of today’s property buyers seem to find cash purchases to be far more advantageous than any other option today, it seems that people are now more cautious when it comes to mortgage loans due to the fact they are trying to avoid ending up in a situation where they may be subject to foreclosure.
Miami foreclosures have been known to be a major problem within the region. While there has been a significant decline in the number of foreclosure properties on today’s property market, it seems that there are many which are not accounted for which are stuck in the foreclosure process that have yet to be sold in the upcoming months.
As a result, people within Miami seem to be more inclined to consider rental options as opposed to actual property purchases since they feel more secure knowing that they will be safe in the event that any unforeseen changes take place in the future.
Advice for Property Buyers
If you happen to be someone who would like to purchase a home or condo unit within Miami today, you should definitely consider taking advantage of the lower mortgage rates which are now at an all-time low. Nevertheless, you will find that there are many opportunities that await you on the Miami real estate market that will provide value to people who would like to take advantage of their options while the property market is doing exceptionally well.
If you would like to learn more about the current market situation within Miami, or if you would like to find out about the options that are now available to you on the real estate market, you should take the time to get in touch with a professional real estate agent for more details.