Mortgage Applications Surge May Signal Return of Homebuyer Confidence
Need a midweek pick-me-up? The housing market is showing early signs that it could be making a comeback as the weekly mortgage application volume rose 12 percent. Though buyers are likely responding to low interest rates, it may also signal rising homebuyer confidence, especially as refinancing applications fell at the same time. As further evidence, the 10 largest states jumped in purchase activity, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting. Though the weekly applications volume was still 20 percent below the same time last year, the turnaround is welcome after demand took a nosedive due to the coronavirus.
Evidence is mounting that homebuyers may be coming back to the market, after demand plummeted in the past month due to the coronavirus.
Mortgage applications to buy a home rose last week, but refinance demand fell, causing total application volume to decline by 3.3% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index.
Mortgage demand from homebuyers jumped 12%, signaling a potential turn in buyer confidence. Volume was still 20% lower than the same week one year ago. Real estate firms and listing websites have been reporting more buyer demand anecdotally over the past two weeks, and some homebuilders say they are also seeing buyers come back.