Mortgage demand improves since last week
According to the Mortgage Bankers Association, total mortgage application volume rose by 7.4% week-over-week. Also, applications to refinance a home loan jumped 9% week-over-week. Even adjustable-rate mortgage applications saw a slight increase.
The increase in total applications and refinance applications comes up against rates that have risen over the past few weeks. It appears that homebuyers that decided to wait until the Spring to start looking for a new home are still moving forward with their plans despite the current rate environment.
Do you want to get into a new home this Spring and get approval to close as quickly as possible? Learn more about our Same Day Mortgage program, and close on a home in as little as 10 days.*
Where can you get some of the best deals on a home right now?
According to the Wall Street Journal, there are deals to be had on new construction. In February 2023, 57% of homebuilders offered some type of incentive to get empty homes sold. From mortgage buydowns to upgrades and options, several buyers looking into new construction were able to find some type of deal on a newly built home. Additionally, 31% of new construction homes were available at a reduced price.
If rates remain elevated, homebuyers may be able to find other areas to save including getting extras or discounts. If you’re a first-time homebuyer, it may make sense to look into new construction to try to get a deal.
Can empty office space help the housing shortage?
A recent report stated that the current housing market in the US is short about 2 million units or more. One possible solution is to take advantage of the current overabundance of empty commercial real estate. Some folks think that converting unused office space into livable housing could solve the problem of a lack of housing inventory for residential buyers and the amount of empty commercial properties.
The Fidelity & Deposit Building in downtown Baltimore was built in 1894 and has served as a financial hub for over 100 years. It’s about to get a new lease on life as it’s being redeveloped with 231 rental apartments and a commercial area.
Cities like Houston, Chicago, San Francisco and Washington DC have office vacancy rates as high as 15%. Converting these empty properties into livable spaces could add thousands of units to either the rental or purchase markets.
It’s an outside of the box idea, but it could pay dividends for cities and downtown areas that have struggled to bring people back since the pandemic started.
*Eligible borrowers must qualify for a “Clear to Close Loan Commitment” (“CTC”). Guaranteed Rate cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- 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.
