As average 30yr mortgage rates surged to over 7%, home buyer demand decreased once again last week. This marks the second consecutive week of declines in mortgage demand. Additionally, based on my analysis home buyer mortgage demand has fallen to the lowest pre-COVID levels since approximately January 2015. This is based on a new report from the Mortgage Bankers Association (MBA).
In my opinion, the reason for the decrease in mortgage applications is three fold: 1) The rise in mortgage interest rates to a 2.5 month high, 2) low amount of existing homes for sale and 3) it’s more expensive to buy than to rent in 46 of the 50 most populous metros (per Redfin).
Homebuyer mortgage demand fell once again as average mortgage rates increased. According to the Mortgage Bankers Association (MBA) mortgage purchase applications fell 4.8% from the previous week and decreased by 26% from a year ago. However, based on my own analysis this is also the lowest pre-COVID levels since approximately February 2015.
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Reports I shared in today’s video: www.mba.org/news-and-research/newsroom/news/2023/05/24/mortgage-applications-decrease-in-latest-mba-weekly-survey
www.altosresearch.com
www.redfin.com/news/rent-vs-own-2023/
/www.mortgagenewsdaily.com/mortgage-rates
To give you a quick mortgage interest rates update, according to the Mortgage News Daily the average 30yr fixed rate mortgage is around 7% for the current mortgage rates (at the time of filming this video for those with excellent credit).
Comment below: what’s your housing market forecast? Do you think a housing crash will happen or are your housing market predictions that the real estate market and home prices will continue to surge?
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*** Jason Walter, CPA (lic 103885) Sacramento real estate agent and native Realty ONE Group Complete (DRE 01923240) [email protected]
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Disclaimer: Jason Walter is not a practicing tax accountant or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video - it is for entertainment purposes only.
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