“Demand is strong across the country, but home buyers continue to be constrained by a shortage of homes for sale and rapidly rising home prices,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting.
Kahn noted that refinancing also declined – 7%, and 9% less year on year, which was driven by a decline in both regular and government refinancing.
“And the number of buy orders rose for the second time in three weeks, recovering from a rather weak April with a predominantly weekly decline,” he said. “While purchasing activity was about 4% lower than a year ago, by comparison, there was a sharp surge in activity last spring, when restrictions related to the pandemic were lifted.”
After hanging below 3% per month, average 30-year fixed rate mortgage according to PMMS Freddie Mac rose six basis points last week to exactly 3%. In the first few months of 2021, rates increased by 3%, but crested by 3.2% in March before falling again.
Now is the perfect time for developers to think about going into non-QM products – not only to grow their business and the variety of products on offer, but also to make sure they don’t miss out on an opportunity to better serve their customers.
Submitted by: Acra Lending
The share of refinancing fell to 61.4% of the total number of mortgage applications from 63.3% in the previous week. IN FHA the share of the total number of applications for mortgages fell to 9.1% from 9.2% a week earlier. IN VA the share of the total number of applications decreased to 11.2% from 12%.
Here’s a more detailed breakdown of this week’s mortgage applications data:
- The average contractual interest rate for 30-year fixed rate mortgages and associated loan balances ($ 548,250 or less) increased from 3.15% to 3.18%.
- The average contractual interest rate for a 30-year fixed rate mortgage with a large loan balance (over $ 548,250) dropped from 3.31% to 3.30%.
- The average interest rate on a 30-year fixed-rate mortgage agreement increased from 3.13% to 3.20%.
- The average interest rate on a 15-year fixed-rate mortgage agreement dropped from 2.54% to 2.53%.
- The average contract interest rate for 5/1 ARM increased from 2.58% to 2.81%.