- According to the Freddie Mac Primary Mortgage Market Survey the slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets. This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place –clocking in at 2.86% last week, and 2.88% this week on the 30-year fixed. We will likely see mortgage rates move once the Federal Reserve implements their tapering policy that has been in discussion over the last couple of months. For now – rates are still prime for anyone who has not yet refinanced.
- Mortgage application volume was up nearly 5% last according to the Mortgage Bankers Association’s seasonally adjusted index. “Housing demand is strong heading into the fall, despite fast-rising home prices and low inventory. The inventory situation is improving, with more new homes under construction and more homeowners listing their home for sale,” said Joel Kan, an MBA economist. Mortgage applications to purchase a newly built home rose unexpectedly in August, according to another report from the MBA. They usually drop in August due to seasonality, but demand appears to be coming back despite still strong price gains.
- Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.0% from July to a seasonally adjusted annual rate of 5.88 million in August, per the National Association of Realtors. “Sales slipped a bit in August as prices rose nationwide,” said Lawrence Yun, NAR’s chief economist. “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
- CoreLogic reported that soaring home prices over the past year boosted home equity wealth to new highs midway through 2021. The amount of equity in mortgaged real estate increased by $2.9 trillion in Q2 2021, an annual increase of 29.3%, according to their latest Equity Report. The average annual gain in equity was $51,500 per borrower, which was the largest average equity gain in at least 11 years and five times the gain from a year earlier.
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