We’re already halfway through October and a lot is going on in the industry. We’ve seen home prices rapidly rise, mortgage rates slightly increase, and the number of owners in forbearance decrease.
Home prices and new constructions continue to skyrocket, making the barrier of entry for a new homeowner higher. But regardless, existing home sales have not fallen off. The Mortgage Bankers Association (MBA) chief economist, Mike Fratantoni stated, “Demand is strong and wage growth is healthy, and first-timers will have better chances to reach the market as inventory increases.”
While the industry saw historically low rates throughout the Summer, the inevitable shift in the other direction is upon us. Rates may not have gone up much, but a quarter of a percentage could only be the beginning.
Naturally, there has been a small decrease in mortgage applications being submitted due to higher prices and rates. New purchase and refinance volume is on the decline but that is to be expected after the recent news and summer months.
On another note – the number of owners in forbearance is continuing to decline. This is a good indicator sign and shows that the economy is recovering.
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