home loan and mortgage refi rise on low interest rates

Mortgage Bankers Assoc says home loan activity on the rise with mortgage refinance leading the way on the back of low interest rates.
Lower interest rates appear to be luring more homeowners to the table to refinance.
The number of mortgage applications rose by a seasonally adjusted 2.3 percent for the week ended May 15, according to the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, rose to 915.9 from 895.6 one week earlier.The Refinance Index increased 4.5 percent, to 4,794.4 from 4,588.6 the previous week.
The refinance share of mortgage activity increased to 73.6 percent of total applications from 71.9 percent the previous week.
The average interest rate for 30-year fixed-rate mortgages decreased to 4.69 percent from 4.76 percent, with points decreasing to 1.13 from 1.18.The average interest rate for 15-year fixed-rate mortgages decreased to 4.44 percent from 4.5 percent, with points decreasing to 1.01 from 1.08.The average interest rate for one-year adjustable rate mortgages decreased to 6.38 percent from 6.41 percent, with points decreasing to 0.1 from 0.11.

Property Investors see opportunity in housing needs

Australian residential property is again being viewed as a solid investment, even though low mortgage interest rates won't last forever. This is good news for mortgage brokers who work with investors.
The home construction slow down over the last 12 months hurt mortgage brokers in the area, but that in turn has created a tight rental market and investors are back in the game.
In fact the combination of low interest rates, high rent returns and low prices can produce ,"positively geared" investments. This means two things. Property can be attractive to lower income earners without tax to offset,to be a money making proposition from day one.
This means low capital growth is not a deterrent, and this could be the case over the next few years.
At the end of the day people need somewhere to live and keep their stuff.
If they can't afford to buy, they rent and that means that there will always be people who need to rent in areas with schools, transport and near work.