Housing Demand is up 18% and Mortgage Rates Hit Another Record Low

Amidst the turmoil our nation is facing with Covid-19 and recent protests over the disheartening death of George Floyd, housing demand continues to rise as mortgage rates fall to another record low. Before jumping into the numbers, please be safe. Our hearts go out to anyone who is struggling for any reason. The Mortgage Bankers Association released an update this week showing mortgage applications up 5% over last week and stunned us with an overall increase of 18% in mortgage purchase loans over May of last year. Considering a drop of nearly 35% in home purchases from the beginning of the year as Covid-19 slammed the housing market, not only have we overcome the loss, we have surpassed May’s housing numbers from last year higher than anyone could have expected. Housing prices are staying strong and Forbearance requests are down considerably. Low mortgage interest rates continue to support this demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 decreased to 3.37% from 3.42%. Refinance loans are still strong and giving homeowners the ability to lower their monthly payments and/or tap into equity. Refinance loans are 137% higher than a year ago. Will the housing market continue on this upward trend as if nothing happened? Only time will tell. Right now hope is high and so is the housing market.  
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