Potential homebuyers leave the open house in Redondo Beach, California.
Patrick T. Fallon | Bloomberg | Getty Images
Autumn is usually the beginning of a late season in the housing market, but in today’s pandemic-led housing market there is usually nothing. Potential homebuyers are seeing a slight increase in inventories, and as a result, are rushing back into the fight.
According to the Mortgage Banking Association, mortgage applications for home purchases have been seasonally adjusted and surged 7% from last week. Additional adjustments have been made to take into account the holidays of Worker’s Day. That is the highest level since April of this year. These applications are 11% lower than the same week a year ago, which was the smallest annual decline in 14 weeks.
Buyers have been plagued by low supply of sellers, which has been increasing slowly but recently. According to a Realtor.com report, the number of new listings increased for the ninth straight week during the summer, but finally fell again last week.
According to the report, “Even if the recent listing declines, the gap with pre-COVID levels has narrowed significantly in 2021 as more new sellers entered the market than last year.” ..
Home prices continue to rise at record paces, which is reflected in mortgage purchase applications.
MBA economist Joel Kang said, “Both traditional and government purchase applications have increased, and the average loan amount for purchase applications has increased to $ 396,800. The highly competitive purchasing market puts upward pressure on selling prices. I continue to play. “
Mortgage refinancing applications fell 3% that week, down 3% from the same week a year ago. Borrowers have little incentive to refinance, as mortgage rates have risen very little last month and are higher than they were at the beginning of the year.
The average contract interest rate for a 30-year fixed rate mortgage ($ 548,250 or less) with a matching loan balance remains unchanged at 3.03%, dropping points from 0.33 (including origination fees) for a 20% down payment loan to 0.32. Did.
The refinancing share of mortgage activity fell from 66.8% last week to 64.9% of the total application.
Mortgage demand from homebuyers jumps to its highest level since April, after new listings have increased throughout the summer.
Source link Mortgage demand from homebuyers jumps to its highest level since April, after new listings have increased throughout the summer.