Mortgage Application Volume Continues to Drop
Last week home mortgage application volume continued to fall due to low inventory and slightly higher mortgage interest rates. Overall application volume dropped 3.7% last week marking the third straight week of declining purchase activity. Purchase activity was not the only sector of mortgage application volume decrease as refinance application numbers fell also. The FHA share of total mortgage application volume increased from 10.2% to 10.8% last week. The VA share of mortgage application volume decreased from 13.38% to 12.1% last...Average Home Sale Price Hits Record High
From 2020 to 2021 the median home sale price increased 16% year-over-year. According to Redfin, the median home sale price is currently sitting at $331,590. Offers to buy existing homes are coming in fast and furious, with nearly 40% of homes being sold over asking price. This number is an all-time high and 15% higher year-over-year compared to 2020. Most experts believe that home prices will remain high even after mortgage rates have risen in the last few months because inventory remains extremely low. As building materials can start being produced at higher levels through facility reopening, new homes can be built quicker and the inventory of new homes should level with demand allowing prices to...New Home Construction Stutters
Sales of newly built homes dropped significantly in February because of the higher cost of building materials and subsequent delays. As the delays continued and material prices increased builders in turn raised their prices also creating a lack of affordability for some new home buyers. Overall, sales dropped 18% month-over-month marking the lowest level of new home sales since May of 2020. According to Chuck Fowke, chairman of the National Association of Home Builders, soaring prices in materials, specifically lumber, have added more than $24,000 to the price of a new home. This uptick in price coupled with higher interest rates is pushing the median home prices nationwide to a 5% higher mark year-over-year. Demand remains high despite these factors, but time will tell if prolonged material shortages will price some prospective buyers out of the new home market and towards existing...Home Prices Climb, Mortgage Applications Dip
The amount of home mortgage applications decreased for the third straight week, paced by a 5% drop in mortgage refinance applications. Overall total application volume was down 2.5% from the week prior. The main issue with application volume right now continues to be the low inventory levels pushing up home prices and discouraging some buyers from entering the market. Should inventory catch up to demand, home mortgage purchase applications should rebound as well. The FHA share of total mortgage applications remained at 11.7% this past week seeing almost no change. The VA share of total mortgage applications decreased to 9.8% from 10.3% the previous...Five First Time Homebuyer Issues to Avoid
Being a first time homebuyer may seem like a daunting situation, but these tips on things to avoid could make your life much more stress free. Not having home insurance prepared: The lender will require you to have an insurance policy in effect the day of your closing. Forgetting to have your insurance ready will delay your closing. Lower than necessary appraisals: If your appraisal comes in lower than your offer, it could be the reason you don’t receive funding to close. You’ll have to cover the difference in value to purchase price, negotiate with the seller, or be forced to back out of the deal. Credit problems: Lenders will re-check your credit prior to close. Opening new credit accounts or making large credit purchases prior to close could ruin your chances of closing. Homebuyer loan document issues: Make sure to check your loan documents for mistakes. If your name is misspelled or other things are incorrect, notify a loan officer as soon as you can. Last minute walk through problems: Make sure to be proactive on your final walk through. If anything is in lesser condition than discussed, try to fix this as soon as possible to avoid...Connect With Us
