Fresh data from the Mortgage Bankers Association confirms that strong demand and short supply keep pushing home prices higher and higher. This past week, the average size of a home loan was the largest in the history of MBA’s survey, which goes back to 1990. The median mortgage size is now more than five times as big as the median annual income. In addition, the median down payment in 2016 was 10 percent. First-time buyers and other buyers of less expensive homes are more leveraged now than they were at the height of the housing bubble a decade ago.
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Applications to purchase a home hit a nine year high last week, increasing one percent week-over-week, and up seven percent annually, according to the Mortgage Bankers Association’s seasonally adjusted index.
Overall mortgage application volume was down 5.6 percent week-over-week, according to the latest index data from the Mortgage Bankers Association.
Interest rates ticked up slightly last week, tamping down mortgage application volume. Total volume dropped 2.5 percent over the previous week, and 2 percent annually, per the latest index data from the Mortgage Bankers Association.
Despite a decline in rates, mortgage demand declined to its lowest level since the pandemic started.
This week, rates for 30-year fixed mortgages ticked up to 4.20 percent, a gain of three basis points over the previous week, and the fourth consecutive weekly gain, according to Freddie Mac's latest data.
Mortgage rates posted their largest increase in over a month last week, but despite another blow to housing affordability, applications to purchase a home inched higher
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