General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMortgage demand from homebuyers shows unexpectedly strong and quick recovery...
...as applications spike 9% from a year ago.
Mortgage applications to purchase a home rose 9% last week from the previous week and from a year earlier, according to the Mortgage Bankers Associations seasonally adjusted index. It was the sixth straight week of gains and a 54% recovery since early April.
The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search, said Joel Kan, an MBA economist. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March.
The gain mirrors an unexpectedly strong sales pace just reported for newly built homes in April. They were forecast to fall 22% but instead rose nearly 1% for the month, according to the U.S. Census. Buyers are rushing into the new home market, as the supply of existing homes keeps falling to new record lows. Some analysts also believe there is now a flight from urban downtowns, where people have been sheltered in small apartments, to suburban markets, where they can find more space, especially backyards and home offices.
https://www.cnbc.com/2020/05/27/mortgage-demand-from-homebuyers-shows-strong-and-quick-recovery.html
Refinance volume is not as strong. Banks currently have a much higher rate for refinance applications than purchase-money applications.
jimfields33
(15,787 posts)I hope the economy comes back. Its best for everyone.
empedocles
(15,751 posts)However, it was totally debunked 90 years ago.
uponit7771
(90,335 posts)... on buying and mortgages for may, if it stays in Jun July they have something.
empedocles
(15,751 posts)losses, so many worse off than they were 4 years ago, etc.].
2naSalit
(86,579 posts)after years of looking for something acceptable. I hope it all works out for him and his spouse, they are hard workers and have a good track record. I hope the same for anyone making a home purchase right now.
leftyladyfrommo
(18,868 posts)Last edited Wed May 27, 2020, 05:20 PM - Edit history (1)
to refinance.
FBaggins
(26,731 posts)refi rates have seen an unusually large gap in pricing compared to purchase-money rates. This is because banks are beyond their capacity right now (with people working from home and resources diverted to government programs and other COVID responses)... so they're using pricing to control volume.
If capacity increases or volume eases a tad... we could see refi rates awfully close to that 3% figure.