Mortgage Applications Are on the Rise

The past five weeks have not seen a rise in mortgage applications. It has been reported that mortgage applications jumped up 1.2% for the first time since June 24. Refinancing applications also rose by 2% according to Mortgage Bankers Association (MBA). Applications to purchase a home also rose 1% even though this is still 16% down from where they were a year ago.

The increase stems from a small drop in mortgage rates from 5.74% to 5.43% percentage points. The Federal Reserve also helped the slight increase along as they announced another rate hike.

“Mortgage rates declined last week following another announcement of tighter monetary policy from the Federal Reserve, with the likelihood of more rate hikes to come. Treasury yields dropped as a result, as investors continue to expect a weaker macroeconomic environment in the coming months,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

“Lower mortgage rates, combined with signs of more inventory coming to the market, could lead to a rebound in purchase activity,” he said.

There are also positive vibes coming from the National Association of Home Builders. The National Association of Home Builders’ Housing Trends Report shows that after five consecutive quarters of decline, buyers are more optimistic due to the rise in home inventory on the market. Homes available for sale increased 5 percentage points to 28% in the second quarter.

The National Association of Home Builders is showing support as housing availability improves. The share of prospective buyers who feel the search for a home will get easier has risen 4 percentage points to 22% since 2020. All regions except the Midwest saw a rise in home inventory.

Click Here For the Source of the Information.