How is the current demand for mortgages?
According to recent data, demand for mortgages is continuing to increase despite elevated mortgage rates. Mortgage applications for homes and mortgage refinance applications were up 3% week-over-week in a report from the Mortgage Bankers Association.
What’s driving the recent increase? New home purchases have largely driven recent demand says the MBA’s vice president and deputy chief economist. Kan stated, “New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market. Existing-home sales continued to be held back by a lack of for-sale inventory as many potential sellers are holding on to their lower-rate mortgages.”
Has the housing market managed to hit a ‘soft landing’?
It’s possible that the worst is over for the housing market. The S&P CoreLogic Case-Shiller index showed that U.S. home prices rose from March to April and were just 2.4% below their peak from last summer. Home prices have ebbed, but we have yet to see a tumble. When asked to summarize the national housing market, S&P economist Craig Lazzara said, “‘recovery’ would be my choice of words.”
While there has been a national recovery for housing prices, regional differences persist. Zillow economist Nicole Bachaud said, “There are more regional differences now than we were probably seeing in, say, 2021, when the whole market was just running forward.”
How much home does a $100k income get you in the current market?
Does your household earn over $100,000 annually and are you still paying rent? You may be able to afford a home. However, in order to understand how much home you can afford, you’ll need to crunch a few numbers.
You’ll have to understand how much debt you carry, understand what your credit score looks like, and figure out which type of loan you’re likely to qualify for. Once you have that information, you’ll then want to apply for a mortgage pre-approval and start looking for a home that’s in your price range. If you have sufficient income and aren’t carrying significant debt, home ownership may be just around the corner.
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.
