Sumary of Weekly Mortgage Demand Reaches Highest Level Since April, and This Could Be the Reason Why:
- Anyone who’s familiar with the housing market can tell you that spring and summer are usually the peak times to buy a home, and things tend to slow down a bit as fall approaches.
- But last week, mortgage applications soared, despite the fact that interest rates didn’t drop drastically.
- In fact, last week’s mortgage application numbers were 7% higher than they were the previous week, according to the Mortgage Bankers Association.
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- But until last week, the number of new listings to hit the residential real estate market rose for nine straight weeks, according to Realtor.
- Home buyers are still grappling with sky-high prices — so much so that the average loan size for a purchase mortgage just rose to $396,800. But the fact that more inventory has been added has no doubt helped mortgage activity pick up.
- While there may be more homes available to buy today than there were earlier in the year, the housing market as a whole is still lacking inventory, and home prices are still extremely inflated.
- Mortgage rates are very attractive today, which is why a lot of people don’t want to wait to buy.