Mortgage applications up 16%
Data released from the Mortgage Bankers Association weekly mortgage applications survey show not only strong demand, but growing demand for housing as home purchase mortgage applications surged over 16% when compared to this time a year.
In spite of a global pandemic, civil unrest, higher than normal unemployment numbers, and a 24/7 doom and gloom news cycle, the housing market continues to be the shining star in our economy.
What’s driving the housing market?
The current housing market rally is being fueled by 2 main factors – low interest rates and a sudden realization for many that their current space isn’t adequate.
For several weeks in a row now mortgage interest rates have declined to record lows, now hovering around 3%. Historically low rates and the realization by many buyers that these are “once in a generation” opportunities to buy a home with rates where they currently are, is fueling a signifiant portion of the home buyer demand we’re seeing. One of the most common questions we hear buyers ask themselves is “why would I wait?”.
Improve my space
In addition to historically low rates, the reality is 4 months of “shelter-in-place” orders across most areas of the country have brought many homeowners to a startling realization- they don’t like their space as much as they thought.
We’re speaking with homeowners on a regular basis who say being confined to their home the majority of the past 4 months have come with the realization that they don’t love their current home as much as they thought they did. Be it square footage, floorplan, neighborhood or other factors, buyers are taking this opportunity to go from “shelter-in-place” to “improve-my-space”.