Palm Beach County Mortgage Volume Accelerates
Palm Beach County Mortgage Volume Accelerates
According to a county clerk of courts, the volume of mortgages in Palm Beach County is on the rise. Mortgages surged by 65% last month in comparison to the same time last year, and there were a record-high of 4,017 mortgages recorded in September within Palm Beach County.
The increase in mortgages in Palm Beach County is an ongoing trend, and local mortgage experts say that the mortgage increase has been recorded for at least the last four months.
However, the increase in mortgage activity is not a result of loosened standards for lending money by local banks. In fact, it still takes a higher credit score and documented income to qualify for a mortgage than it did before the housing crisis.
Housing experts in the Palm Beach County area believe that the increase in activity means that a housing recovery is underway. The amount of foreclosures is down county-wide, and more home owners are opting for Palm Beach short sales instead of opting to file for bankruptcy or foreclosure.
The clerk's report revealed that there was a 5% drop in foreclosure filings year-over-year, although the total filings for 2012 are likely to exceed those of 2011. In part, this is because there has been a backlog of foreclosures that have not yet hit the market, and once that diminishes, the overall rate of foreclosures is likely to go down next year.
Record-low interest rates have contributed to the boom in mortgage applications. According to a recent Freddie Mac report, the average 30-year fixed mortgage interest rate is 3.39%. In comparison, the interest rate one year ago stood at 4.12%.
“We’ve had the lowest rates in the history of residential lending so people who even refinanced two years ago could justify refinancing again,” said a local mortgage expert in an interview with the Palm Beach Post. “Bargains are also disappearing like crazy and people are motivated to make a move sooner.”
As fewer homes are on the market, the demand for Palm Beach real estate is on the rise, and prices are following suit by surging in some of the most desirable areas of town. Investors and traditional buyers alike are hoping to scoop up some of the best deals before prices of real estate go even higher in the coming months.
If you would like to receive additional information about the Palm Beach housing market, please do not hesitate to contact us. We’d love to help you find out more about Palm Beach real estate trends so that you can make the best purchasing decision for you and your family.
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