Year-Over-Year Mortgage Applications are Down 55%

Bob Vaughan

The week ending May 13th saw new mortgage application volume fall 11% according to a report from the Mortgage Bankers Assocation. Comparing new mortgage applications to this time last year, the total volume is down 55.8%, led by a 75.8% decrease year-over-year in refinance mortgage applications. Rates being much higher than this time last year has caused current homeowners who missed out on refinancing lain 2021 to be on the sideline right now. Purchase application volume is only down 15.2% from this time last year as many homebuyers are seeing the affordability of owning a home versus renting in today’s market even with higher interest rates.

 

  • The FHA share of total application volume increased from 10.5% to 11.1% last week.
  • The VA share of total application volume remained constant at 10.5% last week.

 

Application Numbers Lifted Last Week

Bob Vaughan

In the week ending April 29th, mortgage application volume rose by 2.5% led largely by the 4.1% increase in purchase applications. The report by the Mortgage Bankers Association points to an increase in application volume across the board after a slow start to the spring season. Comparing this week’s numbers to last year, volume is down 49.7%, which comes mainly from the drop in refinance volume (falling 70.7%).

 

  • The FHA share of total mortgage application volume increased from 10.6% to 11.1% last week.
  • The VA share of total mortgage application volume increased from 10.2% to 10.3% last week.

Numbers Drop for New Mortgage Applications

Bob Vaughan

According to a report from the Mortgage Bankers Association, mortgage application volume fell 5% last week. This drop was paced by an 8% fall in refinance mortgage applications, marking a number 68% lower than this time last year. Purchase mortgage application volume was down 14% year-over-year. The average 30-year fixed interest rate is now 2% higher than this time last year, making it clear why we are seeing these application trends in today’s market.

 

  • The FHA share of total applications increased to 9.9% from 9.5% the week prior.
  • The VA share of total applications increased to 10.1% from 9.9% the week prior.

Mortgage Applications Numbers Continue to Fall

Bob Vaughan

During the period ending April 8th, mortgage application volume fell 1.3% according to a weekly survey from the Mortgage Bankers Association. Refinance application volume fell 5% from the previous week and 62% year-over-year. Almost four months into 2022, mortgage rates are up 1.5% causing refinance volume to drop drastically. Rates continuing to rise could cause further decreasing mortgage application volume as the year continues.

 

  • The FHA share of mortgage applications increased to 9.5% from 9.2% of total application volume last week.
  • The VA share of mortgage applications increased to 9.9% from 9.8% of total application volume last week.

Lee County Tops Country in Population Growth

Bob Vaughan

According to statistics recently published by Census.gov, Lee County ranks 9th in the highest population growth country wide between July 1st 2020 and July 1st 2021. Lee County reportedly grew by 23,297 people during this period, less than 700 people fewer than Montgomery County in Texas which finished 8th in new population growth rankings. Punta Gorda, FL ranked as the 4th highest growth percentage during the same period, with a 3.7% population increase. 

 

https://www.census.gov/newsroom/press-releases/2022/population-estimates-counties-decrease.html

New Mortgage Interest Declines

Bob Vaughan

The application volume for residential mortgages fell 6.8% for the period ending March 25th according to a report from the Mortgage Bankers Association.  With rates still rising, the incentive for people to refinance is less now than any point in 2021. Refinance application volume fell 15% from last period and is down 10.1% year over year. Refinance volume only makes up 40.6% of total mortgage application volume currently.

 

  • The VA share of mortgage application volume went from 9.8% to 9.5% last period.
  • The FHA share of mortgage application volume went from 8.8% to 9.3% last period.

Mortgage Application Volume Rises 8.5%

Bob Vaughan

The week ending March 4th saw mortgage application numbers increase by 8.5%. This increase was also in line with the first average mortgage rate decrease in about three months. Compared the same time last year, mortgage application volume overall was down 35.8% with the largest drop in applications coming from refinance applications specifically (49.9%). Refinances made up 49.5% of new mortgage applications this past period.

 

  • The FHA share of mortgage applications increased to 8.7% from 8.6% this past period.
  • The VA share of mortgage applications increased to 10.4% from 10.2% this past period.

Rent is Rising Country Wide

Bob Vaughan

As landlords begin to bounce back from their pandemic struggles, rent is rising across the country. The median rent nationwide in January 2022 was $1,789 per month according to a report from Realtor.com. This number represents an increase of 19.8% year-over-year. When comparing rent costs vs. home prices, rental appreciation exceeded home price growth among every size of rental unit. A two-bedroom rental increased by 19.2%, while a two-bedroom home only increased 11% last year. Buying a home may very well be a more affordable option depending on where you are currently living.

2021 Q4 Home Price Trends

Bob Vaughan

According to the national home price index, there was a 18.8% growth rate between December 2020 and December 2021. In the 34 years this data has been tracked, this is the highest calendar year increase ever. In the final quarter of 2021 housing prices still increased quite a bit, but not as quickly as they had in the earlier quarters of the year. During 2021 all 50 U.S. states and the District of Columbia house prices rose. The top five states with the highest annual appreciation were Arizona, Utah, Idaho, Florida, and Tennessee. Specifically, the area with the highest annual price increases in the country was the Cape Coral-Fort Myers area with a 34.6% increase according to the FHFA’s House Price Index. Home buyers in entry and mid-level markets can expect to see the biggest effect of these home price increases with the low level of inventory even as mortgage rates continue to tick upwards.

Mortgage Application Volume Dips 5.4%

Bob Vaughan

The week ending February 11th saw a 5.4% decrease in mortgage application volume according to a report from the Mortgage Bankers Assocation. Compared to the same time a year ago, total mortgage application volume dropped 39.8% with a decrease of 54.1% in refinance application volume specifically. Refinance volume still makes up 52.8% of total applications as of February 11th.

 

  • The VA share of mortgage application volume dropped from 10% to 9.3% this period.
  • The FHA share of mortgage application volume increased from 8$ to 8.3% this period.