Mortgage Activity Shows Signs of Homebuyers Returning to Market
When the pandemic first began in the U.S., it was overwhelming. Homebuyers pulled back from the housing market as the country assessed and reassessed the path forward. But now, there are signs that people are ready to begin purchasing homes again, according to CNBC. Thanks to low interest rates and digital tools, last week’s total mortgage application volume rose 0.1 percent compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Buyers completely drove this uptick in volume as refinancing has actually cooled. Though purchase volume is still 19 percent lower annually, this marks the third straight week of gains in mortgage applications to purchase.
Homebuyers appear to be heading slowly back into the market, as the coronavirus-stricken economy begins to reopen.
Total mortgage application volume rose 0.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The gain was driven entirely by buyers.
Mortgage applications to purchase a home rose for the third straight week, up 7% from a week earlier. Purchase volume was still 19% lower annually, but that annual loss is shrinking by the week. Just three weeks ago, purchase volume was down 35% annually. Demand last week was led by strong growth in Arizona, Texas and California.