Mortgage Application Volume Sees Dip Despite Low Mortgage Rates
Mortgage application volume stayed relatively stagnant this week but did see a small decrease, down 0.7% from the week prior according to a report from the Mortgage Bankers Association. After hitting their highest levels since mid-August the week before, refinance volume experienced a slight 0.3% decrease this past week, but still remained 44% higher than this time last year. Almost 2/3 of home mortgage loan applications were for refinances in this last seven days. The FHA’s share of mortgage applications fell to 10.7% from 11%. The VA share of applications rose to 13.4% rom...Home Mortgage Loan Application Numbers Up
After falling 4.8% the week prior, mortgage applications numbers have almost completely rebounded last week, gaining 4.6% according to a report from the Mortgage Bankers Association. Numbers in the refinance market also rose 8% hitting its highest levels since the middle of August, while making up 65.4% of total mortgage applications. Year-over-year purchase applications are un 21% marking the 20th straight week of year-over-year gains. The FHA’s share of mortgage applications fell to 11% from 11.4%. The VA share of applications rose to 12.2% from...Mortgage Rates Continue to Fall, But Will Rising Prices Push Buyers Out?
Despite the economic roller coaster of 2020, home prices have continued to rise this year. With home mortgage rates at all-time lows, more buyers have entered the market creating competition for a low inventory of homes. While home prices rising during an economic downturn is not unusual, the house price appreciation we’ve seen this year is more dramatic than during any economic decline in the recent past. As sellers become worried about lower prices, they take their homes off market causing a decrease in supply, creating a shortage. This shortage will in turn cause prices to rise as buyers compete for limited inventory. If home mortgage rates continue to remain low, more buyers will enter the housing market to compete for the small amount of homes currently available driving up home prices even further. This raises the question, will some buyers be priced out of the market?...Inventory Remains Low, Prices Rise
Over the past few months inventory across the country has continued to be low, causing a rise in home prices. A wide variety of factors are causing the spike in demand among home buyers, including record low mortgage rates and the wave of millennials who were on the verge of buying pre-COVID. High demand mixed with already low inventory is causing the spike in home prices the market is currently seeing. While rising prices may be a burden for buyers, it’s great news for sellers and other homeowners. The uptick in prices contributes to the growing amount of equity owners have in their homes. Pre-pandemic home prices were growing moderately and so far that continues to be the case, despite negative forces unleashed by the labor market turmoil. As the labor levels return to early 2020 levels, the demand for housing may increase even further. As the housing market competition heats up, it’s important for prospective buyers to come to the negotiating table with pre-qualified offers to differentiate themselves from other buyers...Home Mortgage Loan Applications Experience Slight Dip
Home mortgage loan application numbers experienced a slight downturn this week falling by 4.8% according to a report from the Mortgage Bankers Association. Leading this dip, was a 7% decline in refinance numbers, which included a 9% drop in conventional refinance applications. Refinance volume remains 52% higher right now than it was this time in 2019. Purchase home mortgage loans made up 36.7% this past week, which is slightly higher than last week’s volume. The FHA’s share of mortgage applications rose to 11.4% from 10.1% The VA share of applications fell to 11.9% from...Connect With Us
