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Mortgage demand fell for the second straight week as inventory declines and rising home prices continued to weigh on the housing market.
on Wednesday, Mortgage Bankers Association The MBA reported that applications were down almost 2% last week, down 14% year-on-year. This is the lowest level since early 2020, before the COVID-19 pandemic hit the economy.
According to the MBA, refinancing applications also fell by 2% in a week, down 8% from a year ago.
“The surge in home prices across the country, driven by a shortage of housing supplies, is squeezing the buying market and pushing up average lending,” said Joel Kang, MBA’s vice president of economic and industrial forecasting. statement.
“The Treasury yields are fluctuating, despite most positive economic news, including last June’s employment report, which showed continued improvement in the labor market,” Suga said. ..
He added that many homeowners and potential buyers took advantage of low interest rates in 2020, with fewer borrowers this year.
“Refinancing applications have tended to fall below 2020 levels in the last four months,” Kan said.
Home demand has skyrocketed over the past year as pandemic-related home orders have forced Americans to look for more space in larger homes. Last month, home sales returned to their highest level since 2005. CNBC report.
Mortgage rates also hit record lows of over 12 in 2020, helping buyers gain more purchasing power and boost home prices.
Experts believe that recent numbers may indicate that the housing boom caused by the pandemic has finally happened. Began to disappear..
Source: Equity news