In the final week of June, mortgage applications decreased 18.9% from the week prior – refinance applications were down 30% and applications from those wanting to purchase a home were down 4.5%. Reports today indicate that applications for last week are up 10.9% from the week prior – immediately following a rate decrease.

Refinance applications were the primary rebound, back up 15.2% compared with the prior week, and applications from those wanting to purchase a home up 6.7%. The trend is obvious – lower rates are followed by an increase in mortgage applications. Because new mortgages further infuse the economy, the Federal Reserve will be making strong efforts to keep rates low.

The Idaho Housing and Finance Association has some exceptional opportunities to assist home buyers right now, but some of these perks will be going away at the end of the year. Government incentives offering tax credits are available through the end of the year.

Home prices could also be part of the problem for sluggish mortgage applications. The prospect of further decreasing home values may be scary for some buyers, especially those who aren’t certain they’ll be spending the next ten to twenty years in the same home, allowing the market plenty of time to stabilize and home prices to correct themselves. Home prices have been showing promising signs of stabilizing in the near future, so this may boost confidence in the coming weeks.

Idaho mortgage rates are still low, and the stabilization of the economy could mean rising rates in the near future. Take advantage of some of the great incentives available and start looking for a new Idaho home today!