Fundamentally Speaking, It Doesn’t Look Good By Shmuel Shayowitz | December 17, 2020
With the first major snowstorm hitting our area this week, most expect a slowdown in activities, preparing to be locked down in their homes. However, there is certainly no slowdown expected in the markets, as a myriad of economic reports and news came out this week, which may significantly impact rates and housing activity in the future.
The Mortgage Market
The Mortgage Bankers Association released its Mortgage Application Data for the week ending 12/11, showing that overall application volume increased by only 1.1% from the previous week. Applications to purchase a home were up 2.0%, and Refinances increased by 1.0%. Refinance applications are 105% higher year-over-year, and purchase volume is 27% higher than last year. Per the report, mortgage rates decreased from 2.90% to 2.85%, which is the lowest in the MBA’s 30-year history. This is also 114 basis points,