Analysis Show a Rose in Mortgage Applications – MBA
According to the Mortgage Bankers Association (MBA), “Total mortgage application volume rose 0.4 percent week-to-week on a seasonally adjusted basis for the week ending April 3”. There is a 7 percent rise in loans applications by homebuyers, along with it these applications are now 12 percent higher than the same week one year ago
Mike Fratantoni, MBA’s Chief Economist said, “Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets”.
Another survey made on Tuesday by Mortgage Bankers shows that the credit availability increasing slightly in March, but still dramatically lower than it had been even before the housing boom. Despite the credit conditions, interest rates are still low, rents are sky high, and the weather is warming, all of these things create a larger no. of new homebuyers.
Rising prices will have a greater effect on home buying than credit conditions, as affordability continues to weaken and income growth stalls.
A March survey of consumers by mortgage giant Fannie Mae found a distinct drop in the share of respondents saying they would buy a home if they were to move-just 60 percent, a survey low.
Doug Duncan, chief economist at Fannie Mae said, “Consumers are being patient prior to entering the housing market. Our March survey results emphasize how critical attitudes about income growth are to consumers’ outlook on housing“.
He further added, “We’ve seen modest improvement in total compensation resulting from a strengthened labour market. However, income growth perceptions and personal financial expectations both eased off of recent highs, consistent with Friday’s weak jobs report“.
News Source: https://au.finance.yahoo.com/news/more-homebuyers-apply-mortgage-applications-110107924.html