Warmer weather is back in the forecast, and a rebound in mortgage applications for home purchases may not be far off as well.
That’s according to the Mortgage Bankers Association, which reported a 9% increase in purchase applications last week – the sixth consecutive weekly increase – representing an increase of more than 54% since the beginning of April.
Contributing to this increase are states that are reopening their economies, including Ohio – prompting what could be a hotter summer real estate market than many had originally predicted at the beginning of the pandemic.
As buyers and sellers have become more comfortable with safety precautions, such as maintaining social distancing and wearing masks, they now have more confidence in the home-buying process than seen in March and April.
The pent-up demand from the last two months will also likely drive serious buyers out in these warmer months, leading to what many analysts are estimating will make summer the new “home buying season.”
The same report noted that refinancing fell 0.2% week over week – although that number is still roughly 176% higher than this time last year.
While in recent weeks refinance activity has essentially plateaued in the US, an uptick in volume is expected to return following the Federal Housing Finance Agency’s report last week that GSE borrowers in forbearance can apply for refinancing and new purchase mortgages once their loans are current. Previous guidelines mandated a minimum wait period of 12 months.
During these times, the industry is continuing to change on an almost daily basis. And while these numbers are encouraging, it is vital for agents to take time to communicate with the lenders they regularly work with once every week or two. Ask those lenders the important questions about what changes, if any, their company has, or plans to institute.
For more up-to-date information on the market and happenings here at Amerifirst, be sure to follow our Facebook page for weekly videos from Brandon Davis. As always, we’re here to help.
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Persaud, Navi. “MBA: Mortgage Apps Showing Steady Rise.” National Mortgage Professional Magazine, 27 May 2020, nationalmortgageprofessional. com/news/75040/mortgage-apps-showing-steady-rise.