Are mortgage applications starting to increase?

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Did mortgage applications increase?

 

According to recent data from the Mortgage Bankers Association, refinance applications were up 26.0% comparing last week to the same time period last year, and accounted for 35.1% of total applications.

The MBA’s Market Composite Index, a measure of mortgage loan application volume, increased 0.8% week-over-week on a seasonally-adjusted basis.

Joel Kan, the MBA’s Vice President and Deputy Chief Economist, stated, “Purchase applications did see a small increase after adjusting for the Juneteenth holiday. Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”

 

Which markets should homebuyers look to buy into?

 

A recent article posted on Yahoo! Finance detailed the markets that real estate experts recommend homebuyers to look to buy into. The list focused on areas that offer strong job markets, affordable living, and favorable economic conditions.

Which metro came in at the top of the list? The Phoenix, AZ metro area earned the top spot.

Colten Claus, a realtor and associate broker at 8z Real Estate, said, “Phoenix has seen substantial population growth, driven by its affordable cost of living, warm climate and job opportunities in various sectors. The housing market remains active, with a significant increase in inventory and moderate price appreciation. Investors benefit from a strong rental market, steady appreciation and a diverse economy. The city’s expanding tech and healthcare industries further support long-term growth.”

 

Which markets are seeing home prices rise?

 

Comparing annual home price data, the median home price in the U.S. only increased 0.3%. However, the team at Realtor.com looked into the data, and found several areas that saw dramatic increases in median home price.

Buffalo, NY had a median home price of only $300,000 in May 2024, but the upstate New York metro area that saw the largest annual increase in home price. The price of a home in Buffalo increased 18.6% year-over-year according to the data compiled by Realtor.com.

Three other metro areas saw double-digit increases in May 2024. Cleveland, OH was up 15.9%, St. Louis, MO increased 10.9%, and Pittsburgh, PA saw home prices move up 10.8%.

 

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