Mortgage applications still running well ahead of a year ago
“Applications to refinance a home, which are most sensitive to weekly interest rate movements, fell 0.3% for the week but were 44% higher than a year ago. While that annual comparison may seem like a lot, it had been around 100% higher earlier this year. The new record low was also such a tiny move that it clearly had little impact.
Applications for a mortgage to purchase a home fell 2% for the week but were 24% higher annually. That annual comparison is notable because it’s not usually quite that large but has been running high for the past few months. Housing demand continues to be incredibly strong, driven by record low interest rates and a pandemic-induced need to nest in larger homes with space for work and schooling.
“Applications for government mortgages offset some of the overall decline by increasing 3%, driven by a solid gain in government purchase applications and an 11% jump in VA refinance applications,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”
Mortgage rates didn’t move much at all to start this week and have little incentive to make any move right now since no major economic reports are imminent. “CNBC)
Mortgage rates dip below 3% – where to next?
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
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