In a typical real estate market, house showings and purchase offers begin to swoon as the school year starts. But the past two years is anything but typical as mortgage application volume rose 5% during last week, according to the Mortgage Bankers Association (MBA).
Applications for loans to purchase homes rose 2% to its highest level since April. However that increase is off 13% from the comparable year ago period because homebuyers pulled back during the recent summer due to a toxic mix of soaring prices and low inventory. Refinance applications increased 7% compared with the previous week, but were down 5% from a year ago.
“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.