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 application volumes increased only 0.2% from the week ending August 14th and are 17.2% higher than this time last year.
- Seasonally adjusted applications for purchases increased over the week by 1.7% and purchase application volumes are 18.0% higher than last year.
- 30-year FRM rates decreased again this week, this time by 3 basis points to 4.08% and are less than they were in 2014 by 20 basis points.
- The record stock index declines in China spurred money movement to the US Treasury market, which is viewed as a safe capital investment. Mortgage rates fell as a result.
- Despite a modest decline in pending home sales for June, figures are still 8.2% above those of last year.
- The lack of housing supply has contributed to an increase in home prices, but in most markets homes are still affordable when compared to rents. Low rates are helping to sustain affordability.
Mortgage application data serve as an indicator to homes sales and other home related expenditures such as appliances and furniture.