Real Estate Recovery: Demand for New Mortgages Rises 28% in One Week

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Of the US market disruptions there is no sign of letup in the new year, like mortgage application It hit a record high last week despite concerns that home sales will remain stagnant through 2023.

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Mortgage applications for the week ending January 13, 2023, rose 27.9% from the previous week, according to data released Wednesday by the Mortgage Bankers Association (MBA). The increase was due to a combination of falling mortgage rates and a general increase in applications after the holidays.

The average contract interest rate for a 30-year fixed-rate mortgage backed by the FHA fell to 6.26% in the week ended Jan. 13, reported the MBA. This compares to 6.39% in the previous week.

“Mortgage rates are now at their lowest level since September 2022, and are about a percentage point below the mortgage peak last fall,” the chief executive said. MBA economist Mike Fratantoni in a new story. “As we enter the early spring buying season, lower mortgage rates and more homes on the market will help support the potential for first-time home buyers.”

Although Fratantoni said that the activity of mortgage applications “recovered” during the first full week of January, he quickly added that the sale remained at 35% below last year.

The housing market has been in a slump for the past few months due to high housing and mortgage rates that have more than doubled in the past year. Home sales in November 2022 fell for 10 consecutive months – the longest streak since 1999.

Back in August, the National Association of Homebuilders (NAHB) said the US was in a “housing recession,” citing a slowdown in home sales, mortgage applications and the start of the family

“We’re seeing ten-year-low readings for just about every index you can think of for housing,” NAHB chief economist Robert Dietz told Quartz in a recent interview.

Despite the recent increase in mortgage applications, many housing experts see an uncertain market in the coming months. As reported by GOBankingRates, some observers believe that the playing field will be evenly balanced between buyers and sellers in 2023 after all the best card sellers have bought. two years ago.

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One of the problems facing the US housing market is the lack of available homes for sale. Redfin estimates that listing activity is up 21% from last year, CNBC reported. But that’s usually because homes stay on the market longer. Meanwhile, sales continue to decline, while new home listings are down 22% year over year.

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This article originally appeared on Real Estate Recovery: Demand for New Mortgages Rises 28% in One Week

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