The Outlook for home ownership and mortgage volume rose last week.  In just 7 days, the previous outlook pessimism and average predictions were defeated.  An outlook of optimism and positivity flew high on the wings of mortgage applications that rocketed up 8.3percent.  An outlook of brightness, enthusiasm and confidence is no longer out of style. Just ask the folks who bought a house last week!  What a great beginning for families in the New Year!

Reasons for the New Optimistic Outlook

There are several basic reasons for the surge in mortgage applications. The New Year phenomenon relies on several factors we have summarized below.

1.   The new tax laws:  According to CNBC, “potential homebuyers this year are facing a new landscape on the tax front.”

2.   Likewise, we at Palm State Mortgage have seen that buyers basically respect and like the current interest levels. Plus we anticipate they fear the interest rates will rise shortly.

Give Mortgage Applications a thumbs up for first month of 2018.

 Your outlook of optimism is no longer out of style.


In the Outlook:  A New House Does Not Have Be New!

As usual, Palm State Mortgage Company likes to research the numbers.  Your new house might just be new in the way you perceive it.

Of course, we are talking about making your own home more affordable.

A Little Side Note:  Now, we do not just recommend the refinance loan blindly.  You need to study your fiscal health before you take such a step.

Experts say, “In some cases, it makes perfect sense to refinance, and in others, it wouldn’t be a good idea.”

And they add, “The best thing to do is run the refinance numbers and make a decision. After doing the math, you might actually find that fees and extended loan terms could cause you to lose money rather than save it.”


Outlook soars for renovation and remodel when re-fi brings in some dollars.

Renovating the home you have can be almost as exciting as moving to a new one.


However, the new 2018 numbers prove that a refi home loan can increase the sunniness of your disposition.

How Your Refi Improves Your Outlook

Maybe you will have lower month-to-month payments after the new loan.  Mark your financial outlook much improved.

Refinance applications can increase the sunniness of your disposition.

Maybe you will have lower month-to-month payments after the new loan.  Moreover, your refi might empower you to make a few home improvements.

New kitchen appliances, new floor treatments, or a little landscaping can make you see your home with fresh eyes. (Plus, you don’t have to pack.)

Likewise, many families are discovering a home does not have to be brand new-never-lived-in-by-a-previous-owner. A pre-owned home will still be their “new place.”

Refinance Mortgage Leads

Whatever the logic, the leading edge of the ascending mortgage applications the rising number of mortgage applications was created by the refinance mortgage market, just last week.  In case you are wondering, the number of refi loans rose ascended “by 11 percent from the previous week.”

Closely related to this point is the growing popularity of the use of cash-out refinance loans. According to Zillow, “A cash-out refinance is a refinancing of an existing mortgage loan, where the new mortgage loan is for a larger amount than the existing mortgage loan, and you (the borrower) get the difference between the two loans in cash.

Basically, homeowners do cash-out refinance so they can turn some of the equity they’ve built up in their home into cash.”


Seeing the Numbers Behind this Outlook

The average amount captured last year with cash-out re-financing was $68,000 in equity, per applicant. Remember such numbers reflect averages and medians. Americans took out 26 billion dollars in the third quarter of 2017. And it proved to them that home equity is a financial force for good.

Our Optimistic Outlook Must Include the Weather

Currently, it feels like we are riding the polar express from one end of the country to the other. However, when we look at December, we had a 7.8 increase in mortgage applications.


Plan against Negative Equity.

Palm State Mortgage Company Defeats Negative thought and your financial planning defeats negative Equity. 


Predictions and Convictions Create A New Outlook for 2018

Therefore, we agree with experts who blame the Fall slowdown on three individuals known as Harvey, Irma and Maria. Lynn Fisher, MBA Vice President of Research and Economics explained, “After playing catch-up for 2 months following the slowdown caused by hurricanes Harvey, Irma and Maria, mortgage applications for new homes declined in December to a more normal growth rate of 7.8% on a year over year basis,”

Then he added a summary for last year, saying, “Looking at all of 2017, applications increased by 7.1 percent compared to 2016.” He stated, “Based on December applications, we forecast that new home sales fell in December but remained nearly 16 percent higher than a year ago…”

He concluded by “anticipating only modest year over year growth for new home sales in 2018.”

Shortage Of Labor Slows Home-Builders

Although we hate to admit it, we understand that prediction, realistically, “a lack of labor and land will continue to constrain home-builders.”  On the other hand, Spring is coming, and the home-builders are getting ready.  Do you feel it, that sense of hope and confidence? Can you hear it, even on chilly days, in that tappet tap of the roofing hammers?  Do you hear it in the gravelly purr of the occasional concrete mixer?  Can you see it in the stacks of lumber on the backs of those rolling flat-bed trucks?

We are not so sure 2018 will be such a flat, gray, modest year, no matter what the pundits say.   And the numbers have begun to agree with an optimistic outlook.

As always, we thank our Palm State readers, clients, friends and supporters for reading our blog.  All of us here at Palm State Mortgage await your call or visit to discuss the issues of 2018.