Slower Florida Mortgage Loan Activity Doesn’t Spell Housing Market Doom

Florida mortgage applications are decreasing.

Many experts are claiming that the Florida housing market might not even have hit rock bottom.
Nevertheless, Bob Walters, chief economist of Quicken Loans, says he still expects consumers to take advantage of the opportunity they have in real estate throughout 2007.

“Though mortgage applications declined last week, the economic outlook for 2007 bodes very well for housing and mortgage activity, on both the home purchase and [Florida mortgage refinancing] fronts.

Mortgage rates remain favorable, employment is strong, and recent industry data has hinted toward an improving real estate picture,” said Walters. “With more than $1.1 trillion in ARMs expected to adjust in 2007 we expect a strong pace of homeowners refinancing out of adjustable rate mortgages into fixed-rate home loans throughout the year.”

In other words: demand is yet to come. With spring almost upon us, buyers are more likely to purchase and activity more likely to increase again.