As rising mortgage rates cause fewer individuals to submit home loan applications, real estate agents nationwide may be able to take a moment to relax and plan ahead for future business.
The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 24 detailed a week-over-week decline in consumer activity, as the Market Composite Index fell 8.8 percent. The organization's Purchase Index improved by 3 percent last week, as the Refinance Index ticked down 12 percent to the lowest level observed since December 2012.
However, just because fewer applications for residential financing were submitted, doesn't mean the housing market has lost any momentum. A recent article in the Wall Street Journal outlined a nationwide increase in house flipping - the process in which real estate investors purchase distressed properties, rehabilitate them and then list them on the local market in hopes of realizing a large return.
The growing popularity of this practice may see the nation's inventory of foreclosed houses shrink, and supply of available single-family homes increase considerably. Accordingly, public property records may see housing sales continue to bolster in the coming months.
Due to this possibility, real estate agents may want to prepare themselves - and their schedules - for a busy summer homebuying season.