Currently Reading

Relaxed Stay-at-Home Orders Spark Last Minute Rally in Spring Homebuying Season

Advertisement

Relaxed Stay-at-Home Orders Spark Last Minute Rally in Spring Homebuying Season


May 14, 2020
Sold sign on a home
By GJS

Spring has sprung, and in just over a month it will be gone without the homebuying season ever taking off, thanks to the coronavirus. But as we head into the final stretch of spring, purchasing activity has started to climb with the Mortgage Bankers Association’s 30-year fixed-rate mortgage contract rate up by 4 basis points from the week before. Loosening restrictions and pent-up demand are rekindling the cooled market, according to the MBA. Though it’s too late to save the spring homebuying season, the last minute performance brings hope for the coming months. 

Since its previous week’s reading, which also marked a record low in the series, the Mortgage Bankers Association’s 30-year fixed-rate mortgage contract rate edged up by 3 basis points to 3.43%. The Market Composite Index, measuring mortgage loan application volume for purchases and refinancings, increased by 0.3% on a seasonally adjusted basis from one week prior.

The MBA cites the release of pent-up housing demand from relaxed stay-at-home orders as the reason for the continued increase in Purchasing activity, indicated by the seasonally-adjusted increase of 11% in the Purchasing index from the prior week. In the absence of the virus-related lockdown measures, the market activity from spring homebuying season would clearly be greater, with increased traffic of prospective homeowners. The unadjusted Purchase index is reflective of this, being 10% lower than the same week one year ago.

Read More
 

Related Stories

Economics

As Mortgage Rates Lower, Millions of Americans Can Save Big

With mortgage rates down to a new low, a record 19.4 million Americans could save hundreds per month. The average interest rate for Freddie Mac’s…

Financing

Disaster Recovery through Job Order Contracting

When disaster strikes your community, job order contracting is a reliable, efficient way to fund rebuilding efforts.

Market Data + Trends

Mortgage Demand Shrinks to 6-Month Low

Record low mortgage rates are proving to be unhelpful as homebuyer demand falls for the sixth time in seven weeks. Mortgage application volume…

Advertisement

More in Category




Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.