On June 21, 2022, there is a “for sale” sign in front of a house in Miami, Florida. According to the National Association of Real Estate Agents, existing home sales fell 3.4% to a seasonally adjusted annual rate of 5.41 million units. Sales were down 8.6% from May 2021. Median homes sold in May were $ 407,600, up 14.8% from May 2021, due to lower sales of pre-owned homes.
Joe Ladle | Getty Images
Mortgage applications for home purchases increased by 8% compared to last week, according to the Seasonally Adjusted Index of the Mortgage Banking Association. This is partly supported by the demand for floating rate mortgages. However, the application is 10% less than in the same week a year ago.
The significant rise in mortgage rates could actually have spurred demand for homebuyers, perhaps because consumers are concerned about higher interest rates. Mortgage rates have soared to their highest levels since 2008, but last week recorded the largest weekly jump in 13 years.
On the other hand, the average contract interest rate for 30-year fixed rate mortgages ($ 647,200 or less) with a matching loan balance has risen from 5.65% to 5.98%, and the point for a 20% loan is 0.71 (including origination fees). It rose from 0.77. down payment. Prices have almost doubled from a year ago.
read more: May sales of pre-owned homes decline
Joel Kan, MBA economist, said: “Average lending is just over $ 420,000, well below the $ 460,000 peak earlier this year, which may indicate a slowdown in home price growth.”
Floating rate mortgages have low interest rates and can usually be fixed for a period of 5, 7, or 10 years.These loans are considered risky, but can be adjusted to higher or lower rates, so they are undertaken much more strictly than they were during the last housing boom over a decade ago and are final. In the target Spectacular housing collapse..
As the supply of homes for sale is finally growing, buyers’ demand may also be increasing. According to Realtor.com, active inventories across the country are currently up 17% year-on-year. Homes are now selling faster than they were a year ago.
Mortgage refinancing applications were down 3% that week, down 77% from the same week a year ago. The refinancing share of mortgage activity fell from 31.7% last week to 29.7% of the total application.