Mortgage demand surges by 40 percent from a year ago amid house-buying spree, low rates

The end of August usually marks the beginning of the slow season for housing, but as with everything else, this year’s trends are like no other.

Mortgage applications to purchase a home rose 3 percent last week from the previous week and were a stunning 40 percent higher from a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.

The year-on-year comparison is usually in single digits.

While the figure may have been skewed slightly by the Labor Day holiday, which fell earlier last year, purchase demand is still running significantly higher than a year ago.

Buyers are still getting significant incentive from low mortgage rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances up to $510,400 fell to 3.07 percent for loans with a 20 percent down payment.

For the 15-year fixed rate mortgage, the rate declined to a record low of 2.62 percent on conventional loans.

“There continues to be resiliency in the purchase market,” said Joel Kan, an MBA economist. “The average loan size continued to increase, hitting a survey high at $368,600. Highlighting the strong overall demand for buying a home, conventional, VA and FHA purchase applications all increased last week.”

Applications to refinance a home loan rose 3 percent for the week and were 60 percent higher than a year ago. Refinance volume has been extremely high since rates plummeted last March, but the pool of borrowers who haven’t already taken advantage of these low rates is shrinking.

The refinance share of mortgage activity increased to 63.1% of total applications from 62.5% the previous week. The adjustable-rate mortgage share of activity decreased to 2.2% of total applications.

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House Insurance Comparison: Overview of Factors That Affect Rates & How You Can Choose a Policy

As with any type of insurance, you are probably interested in getting the best possible deal on home insurance. Thankfully, there are tools that make it possible to not only search for policies, but to do house insurance comparison with multiple quotes to find the best one for you.

For some homeowners, price matters more than anything. This should not be the case, though, since overall value is more important than cheap rates. Consider both the premiums and deductibles. Think about the rebuilding costs of your home. How much will it cost to literally replace everything is your home and property is utterly destroyed? The current value of your home and the rebuilding price will not be the same. Try to estimate how much you will be able to afford to pay in deductibles in the worst case scenario and keep that in mind when doing house insurance comparison.

Here are some of the factors that affect the insurance quotes you will get:

• Home’s type of construction and age

• Location

• Credit score

• Deductible

• Certain risk factors (swimming pool, trampoline, aggressive dog breeds, etc… )

• Claims history

• Roofing material

• The yard / property / landscape

Older homes have a higher chance of something going wrong regarding the electric wiring, plumbing, HVAC systems, ceiling, and construction in general.

House Insurance Comparison of Coverage Types

There are certain things that general home insurance policies don’t cover. Make sure you know exactly what is covered and what isn’t before you make your choice. Sometimes it is the matter of gaps in the coverage, where the policy owner thought they were protected but either had incorrect or insufficient coverage. Such issues can be avoided by carefully reading over the terms of each quote you are provided with.

Flood insurance, for instance, isn’t always covered in basic policies. If you live in an older home and have concerns about plumbing, or live near a body of water, this is something you will definitely want to think about. All it takes is a few inches of water to utterly destroy your flooring and some of your furniture. Even a small stream can become a raging river if there is enough rain.

Discounts are sometimes available, especially if you install safety and security equipment.

Where can you get started with house insurance comparison? All you have to do is look into the unique insurance platform set up by Lemonade. It even has a neat AI bot that will help craft the perfect insurance for you. Get affordable, reasonable rates – especially if you use Lemonade House Insurance discounts.…

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