In a typical real estate market, house showings and purchase offers begin to swoon as the school year starts. But the past two years is anything but typical as mortgage application volume rose 5% during last week, according to the Mortgage Bankers Association (MBA).
Applications for loans to purchase homes rose 2% to its highest level since April. However that increase is off 13% from the comparable year ago period because homebuyers pulled back during the recent summer due to a toxic mix of soaring prices and low inventory. Refinance applications increased 7% compared with the previous week, but were down 5% from a year ago.
“Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their home for sale,” said Joel Kan, an MBA economist.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds that beach homes are the most sought-after vacation-home type, and the investment potential of a second home is an important factor in homebuyers' purchasing decisions
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable