Back to Back Rises in Mortgage Application Volume
According to the latest report from the Mortgage Bankers Association, home mortgage application volume increased for the second straight week for the week ending May 14th, 2021. Refinance volume is once again fluctuating to mirror mortgage rates, but over all refinances made up 63.3% of mortgage applications during this past week. Desire to buy a home is still high across the country, but the lack of inventory is remaining a problem for the purchase market. The increasing cost of building materials such as lumber is increasing the average cost to build a single-family home by around $35,000. If this trend continues, the prices of already completed homes will continue to rise also as people are beginning to be priced out of the new home market. The FHA share of total mortgage application volume dropped from 9.9% to 9.2% this past week. The VA share of total mortgage application volume increased to 12% from 11.7% this past...Mortgage Applications Dip Once Again
Mortgage application volume once again experienced a dip, falling 0.9% last week. In a week marked by a slight rise in mortgage rates, refinance application volume remained unaffected, while purchase applications saw a minor fall. This marks the second straight week of decreases in purchase mortgage application volume. The lack of inventory remains a problem with purchase mortgages as the amount of people applying is outweighing the amount of homes available discouraging prospective buyers. The FHA’s share of mortgage applications decreased to 10.1% from 10.7%. The VA share of mortgage applications decreased from 12.2% to...Things to Consider When Buying a Second Home
As more and more people begin buying second homes in eventual retirement destinations, there are a few things you should consider to make this decision as easy as possible. Find the best location: Does the location of your eventual retirement residence coincide with your lifestyle? Do you enjoy activities the area provides? Know what is most important to you: Is it close to family? Is it near airports/trains for easy travel? What factors matter the most to you? Consider medical care facilities: Is it near hospitals, doctors, and specialists? Does the home meet current and future needs: Will you want stairs when you’re retired? Is the house too large to keep clean by yourself? Think about rental income the property can bring: Can you rent in this neighborhood? Do the seasons change drastically: Make sure you want to live in this area year round. Weather that becomes drastic during specific seasons may be a deterring...Sense of Community and Building Equity Top Factors for Young Buyers
A recent homebuyer report from Bank of America showed that over half of homebuyers between 18 to 43 highly valued friendly neighbors and a sense of community when deciding where to buy a home. When polling that same question with the homebuyers aged 57-75, only 33% of buyers said community was an important factor to them. Having a sense of belonging and being connected is a major factor in today’s age. In addition, 46% of prospective homebuyers 18 to 43 said that building equity through your home is more important now than ever before. Long term stability is in sight for these buyers by trading in their monthly rent, which could rise at any time, for steady mortgage payments. Knowing these important factors may aid in working with young, first time...Huge Rebound in Mortgage Application Volume Last Week
After six weeks in a row of mortgage application decreases, last week there was a 8.6% rise in volume. Mortgage rates reached their lowest level in almost two months and this caused the uptick in refinance volume we experienced last week. Refinance applications accounted for 60% of total mortgage applications during this past week. The FHA’s share of mortgage applications increased to 11.3% from 10.8% the previous week. The VA’s share of mortgage applications decreased to 11.5% from 12.1% the previous...Connect With Us
