How high has mortgage demand surged in January?

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What do the most recent mortgage demand metrics say?

According to the most recent weekly report from the Mortgage Banker’s Association, demand for mortgages was up almost 7% week-over-week. The recent surge in applications comes after mortgage rates dropped for the third consecutive week.

In addition to the improvement in mortgage applications, mortgage refinance applications were up 15% week-over-week. After a slow start to the winter in December, it appears that the housing market is starting to pick up.

Are you looking to get into a home for the spring? Start your application at Guaranteed Rate today!

How about pending home sales data?

In addition to the positive data for new mortgage and refinance applications, pending home sales rose 3% in December 2022 compared to the previous month. December 2022 marked the first month in a year in which pending home sales actually increased. This appears to be yet another sign that the US housing market is continuing to thaw after a frosty end to 2022.

How much is inflation weighing on home sales?

The short answer to this question is: a lot. However, inflated prices aren’t stopping first-time home buyers from getting into the market. A detailed study from real estate data firm, Clever, showed that 92% of millennials cited inflation as a reason they were staying out of the housing market. The same study also showed that only 28% of millennial homebuyers were going to delay entering the market because of inflation. The study also asked how millennial homebuyers were saving for their down payment. 50% of respondents claimed they were saving part of their salary, 45% stated they were cutting back on expenses, and 38% said they were adding an extra source of income.

Any first-time homebuyer ready to get into the market should take a look at our detailed guide. From tips for your mortgage application to advice on how to find a home that meets your needs, the first-time homebuyer guide from Guaranteed Rate can help simplify your journey.

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