Mortgage application volume up, hits 5-week high
According to data released by the Mortgage Bankers Association, mortgage applications have hit a five-week high. Application volume was up 2.8% on a weekly chart and was up for the second time in the last two weeks.
Additionally, loan sizes were also up slightly, and ended a 4-week slide. The average loan size was $355,700 last week compared to $353,600 the previous week.
Also, refinance applications were up 2.0% compared to the previous week, and are 7.0% higher than the same time last year.
How many people were helped by FHA loans in 2023?
The Federal Housing Administration released its annual report on Wednesday. According to their data, the FHA helped 478,000 first-time homebuyers obtain mortgage insurance in the fiscal year of 2023.
Overall, the FHA helped 765,000 homeowners, including 33,000 seniors get access to mortgage credit in the fiscal year ending on September 30th.
Also, the average age of first-time homebuyers using an FHA loan* was 38 years old. The average has been in the 37-to-38 years old range since 2015.
The report stated, “Despite numerous challenges in the mortgage and housing markets, FHA continued to facilitate the availability of financing for first-time homebuyers, borrowers of color, and others traditionally underserved by the conventional mortgage market.”
Can blockchain technology transform real estate?
The real estate market is one of the cornerstones of the world economy, but even it has inefficiencies, challenges, and outdated processes. Blockchain technology could be the answer to take buying and selling real estate into the 21st century and beyond.
Blockchain is essentially a bit of code that keeps track of transactions across a computer network. Since it’s tied to a network, it’s more transparent and secure than most ways of transacting. Each block or transaction is added to a line of preceding transactions. This forms an unchangeable record.
Blockchain can provide a secure record of property ownership and title information that can’t be tampered with. It can also allow for the tokenization of real estate assets which would enable investors to buy fractions of a tradable digital token and open up opportunities to individuals who may have been otherwise prevented from investing. It can also facilitate crowdfunding for real estate projects.
The technology has already been tested around the world. One experiment by the UAE government in 2021 completed 50% of financial transactions on blockchain technology. The results included less paperwork, greater cost saving, and increased efficiency. Blockchain could do the same for the real estate and mortgage industry if it’s allowed.
* Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency.
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