Spring is usually when the housing market warms up. But after months of crazy shopping, there is a sign that it could finally slow down.
According to the Association of Mortgage Bankers, applications for monitoring the mortgage index for the purchase of houses decreased by 5 percent compared to the previous week. That follows two weeks slight decreases.
At the beginning of the pandemic, the index is still 51 percent higher than a year ago.
“The rapidly recovering economy and the improving labor market are generating significant demand for home purchases, but activity in recent weeks has been constrained by faster house price growth and extremely low inventories,” said Joel Kan, MBA vice president of economic and industrial forecasting. declaration.
Buyers hurried to buy and left hesitant shoppers in the dust. Redfin data shows that sellers of 59 percent of homes under contract last month accepted bids within two weeks of listing – historical maximum. And the bidding wars pushed the average selling price just above question.
With interest rates rising recently, the MBA refinancing index also fell 5 percent from the previous week and was 20 percent lower than the same week a year ago. Refinancing accounted for 60.3 percent of applications and the average refinancing loan was $ 272,100, down from $ 275,000 last week.
“Overall, demand for refinancing has declined and volume has fallen more in the last 10 weeks.”
than 30 percent, “Kan said.
The average loan for a purchase decreased to $ 399,500 from last week’s $ 401,400.
The average interest rate on 30-year fixed rate mortgages rose to 3.36 percent from 3.33 percent, while jumbo loans rose to 3.41 percent from 3.34 percent.
MBA survey It covers 75 percent of the residential mortgage market and has been conducted every week since 1990.