This blog post was written by La Shawn Skeete. La Shawn is a Summer Research Intern, and is currently studying at The University of Maryland, College Park pursuing a degree in Economics.
- Seasonally adjusted mortgage applications increased 4.6 % from the week ending June 26th and 8.4% when compared with this week last year.
- Seasonally adjusted applications for purchase increased over the week by 6.6% and application volumes are a promising 16.9% higher than this time last year.
- 30-year FRM rates decreased 3 basis points over the week to 4.23% and remain 9 basis points less than they were in 2014. Fixed rate mortgage applications volumes are also 9.4% higher since this time last year and government FRM applications are up dramatically from last year by 29.0%.
- Despite rising mortgage rates, applications remain robust.
- These increases in applications reflect stronger interest in home-ownership through “strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs”, according to NAR Chief Economist Lawrence Yun.
- There remains about 3 months of housing supply while the normal figure is 5-7 months for a balanced housing market. An increase in supply would help to ameliorate price pressure and boost applications.
Mortgage application data serve as an indicator to homes sales and other home related expenditures such as appliances and furniture.