There is a heat wave coming, but we’re not talking about the upcoming weather. The housing market is heating up as strong mortgage demand foreshadows a much quicker recovery than anyone expected. Mortgage applications to purchase a home spiked 9 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Though refinance applications are still weak, mortgages overall were up for the week, marking the sixth straight week of gains for purchase applications and a 54 percent recovery since early April.
It’s not as if the coronavirus pandemic has gone away, but after a sharp pullback, homebuyers are now piling back into the housing market much faster than expected.
Mortgage applications to purchase a home rose 9% last week from the previous week and from a year earlier, according to the Mortgage Bankers Association’s 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.”