Applications for mortgages on purchases are up 6.8% from last week according to the Mortgage Bankers Association. This is a big jump compared to refinance mortgage applications which actually dropped 1.3%. What is causing this influx of new homebuyer applications? What does this mean for short sales here in GA?
Well, most agents know that at the end of next month, a huge incentive for new buyers is going away. What am I talking about? The $8,000 Federal Housing Tax Credit of course. We all know that contracts need to be binding by the 30th of April for their buyer to be eligible for that tax credit, and believe me I hear the buzz going around.
So, is this tax credit expiration causing the rise in new purchase mortgage applications this week? I’m not a mortgage trends expert, but I think it’s safe to say, based on the data, that these two events may be connected. If you’re a buyer, you need to hustle and find a property to be binding by the 30th. Short sales are speeding up, so if you are looking to buy an Atlanta short sale, you might still have an opportunity to get a short sale acceptance in time for the tax credit.
