Even though we saw a slight decrease in April, home purchases are still going strong. The Mortgage Bankers Association’s (MBA) Weekly Application Survey shows that purchase activity rose 5.3% with an even higher year-over-year the week of May 29.
The
ongoing economic and virus challenges didn’t stop housing demand which
boasted a rise in home-buying activity compared to last year. A big part
of the increase is the record low in mortgage rates. The Primary Mortgage Market Survey’s 30-year fixed-rate mortgage shows a decrease by 5 basis points which keeps the ongoing record low.
The survey shows that home purchase applications have been increasing
for five consecutive weeks. In fact, the National Home Builders
Association (NAHB) predicts that the housing industry will be a leading
sector when it comes to the country’s economic recovery. Fannie Mae
reports, “the refinance volume of applications is poised to reach a
17-year high as it forecasts mortgage rates to tumble further.”
The HMI, which indicates builders’ confidence, showed a sturdy gain in May. According to the current National Association of Home Builders/Wells Fargo Housing Market Index (HMI)
when it comes to newly-built single-family homes builder confidence
rose seven points to 37 last month. The HMI index also showed an
increase in sales conditions to 42, a 46 for the component measuring
sales expectations in the next six months and 21 for the measure
charting traffic of prospective buyers.
Across the regions the HMI scores’ monthly average increased 7 points
in the Midwest to 32, in the South, it rose eight points to 42 and in
the West a 12 point increase to 44. The only region which saw a decrease
was the Northeast which fell 2 points to 17.
Click Here For the Source of the Information.
No comments:
Post a Comment