[ad_1]
National Association of Home Builders CEO Jerry Howard said demand for organic housing could cause pricing issues.
People are showing renewed interest in the housing market as the latest figures show a resurgence in mortgage applications last week, unprecedented since the spring.
The Composite Market Index, a measure of mortgage application volume, rose 4.9% on a seasonally adjusted basis from the week of September 17. The previous week’s results included an adjustment for the Labor Day holiday.
“There was a resurgence in mortgage applications the week after Labor Day, with overall activity at its highest level in over a month, and purchase requests peaked for the last time. times in April 2021, ”said Joel, associate vice president of economic and industrial forecasting at the MBA, said Kan.
On an unadjusted basis, according to the MBA report, the index rose 16% from the previous week, while the refinancing index rose 7% from the previous week and was 5% lower. % in the same week a year ago.
PAIR OF BEVERLY HILLS HOUSES OWNED AT THE END OF THE GREAT CARL REINER FETCH COMEDY $ 16.8M
In addition, the seasonally adjusted purchasing index rose 2% from the previous week. The unadjusted buying index rose 12% from the previous week and was 13% lower than the same week a year ago.
People are showing renewed interest in the housing market as the latest figures show a resurgence in mortgage applications last week, unprecedented since last April. (AP Photo / Michael Conroy, File) (PA)
“Housing demand is strong as fall approaches, despite rapidly rising home prices and low inventory levels,” Kan said. “The inventory situation is improving, with more new homes in construction and more homeowners putting their homes up for sale. Despite this week’s increase, purchase requests were still 13% lower than the same week a year ago. “
“Homeowners acted as rates remained low at 3.03 percent,” Kan added. “This week’s 7 percent refinancing gain was driven strongly by an increase in FHA and VA applications.”
The refinancing share of the mortgage business rose to 66.2% of total applications, from 64.9% the week before, according to the MBA report. The variable rate mortgage (ARM) activity share decreased to 2.9% of total applications.
FHA’s share of total claims increased to 11.5%, from 9.9% from the previous week. The VA share of total claims also increased to 10.4% from 10.2% the week before. USDA’s share of total claims fell from 0.4% to 0.5% the week before.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additionally, the average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 548,250 or less) remained unchanged at 3.03%, with points decreasing to 0.30 versus 0.32 (including set-up costs) for 80% of the loan-to-value ratio (LTV). The effective rate has decreased compared to last week.
The survey covers over 75% of all residential mortgage applications to individuals in the United States and has been conducted weekly since 1990.
[ad_2]
Source link