Mortgage rates drop to another all-time low
According to the latest data released by Freddie Mac, mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the mood to buy a home. Purchase demand activity is up over 20% from a year ago, the highest since January 2009. Unsold housing inventory was at near record lows going into the pandemic and has only decreased since then.
Purchase applications reach highest level in over 11 years
A recent article in HousingWire, a leading housing industry journal, reported that home purchase applications jumped 8% from the previous week, on a seasonally adjusted index, to the highest level in over 11 years. Another report said that applications for purchase mortgages gained for the ninth consecutive week as housing demand rose 25% above pre-pandemic levels.
“The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence,” said the Mortgage Bankers Association.
Applications for refinances also rose 10% from the previous week, which was the second gain for refinances in two months. “Refinancing continues to support households’ finances, as homeowners who refinance are able to gain savings on their monthly mortgage payments in a still-uncertain period of the economic recovery,” said the MBA.
Housing market remains strong and mortgage rates will likely remain low
Narin Seera, Vice President of Capital Markets Operations at Academy Mortgage, says: “While the U.S. housing market remains strong for new and existing home sales, the promise from Federal Reserve to maintain the current low rates through 2022 provides further impetus to the U.S. real estate market and the sector financing it.”