Where is the current demand for mortgages?

weighing demand for mortgages | mortgage rate news

Demand for mortgages drops to a 25-year low

Given the recent rise in mortgage rates, higher home prices, and fewer homes on the market, it’s not a wonder that mortgage demand is low, but the Mortgage Bankers Association confirmed it. Demand for mortgages is at its lowest level since 1997. Homebuyer’s demand for mortgages was down 4% for the week and was down 38% compared to a year ago.

Also, mortgage refinances are 86% lower than the same week a year ago.

The housing market struggled in September

September is normally part of peak season for the housing market, but CNBC reported that this past September was one of the slowest we’ve seen with housing starts and permits coming in lower than their forecasted numbers. It was expected that housing starts would be down 6.7% in September, but it came in at 8.1%. Building permits were expected to be up 1.5% in September, but only came in at 1.4%.

Does the Federal Government have a plan to boost affordable housing?

An op-ed appeared on Yahoo! Finance from Janet Yellen, the secretary of the treasury and Marcia Fudge, the secretary of Housing & Urban Development. In the detailed article, Yellen and Fudge detailed how single-family homes have been underinvested in for a long time, and they’ve been working to allow funds from the American Recovery Plan to support home construction. They’ve already paved the way to help complete a 278-unit complex in Wilmington, NC that was stalled due to the pandemic. Several other projects are also said to be in the pipeline.

If the government wants to support home construction, enable families to get into affordable housing, and enable borrowers to get the help they need, this could really help a housing market that needs the support.

in 10 minutes?

The pre-approval process is lightning fast, and can be completed
in under 10 minutes. Grab a few important documents to get started.
  1. Tax Returns
  2. Copies of W-2s (or 1099s for independent contractors,
    freelancers and the self-employed)
  3. A payroll stub
  4. A bank statement
  5. Loan obligation info (student loans,
    auto loans and credit cards)

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply. 

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.