Rise in Purchase Mortgage Applications
In further substantiation of my most recent Reports of May 10 and 21 that home sales are leading the recovery (reproduced herein for ease of reference), today the Mortgage Bankers Association (“MBA”) reports for the week ending May 22, a sixth consecutive weekly increase in mortgage applications, a jump of 54% from early April. More to the point, the Purchase Index, which measures home sales with mortgages, and has proved to be a reliable indicator of home sales, was 9% higher than the same week one year ago. I believe it bears repeating. The Purchase Index, dramatically, 9% higher for the week ending May 22nd, corona era (“CE”), vs. the same week last year, before corona (“BC”). Sellers take note: New Listings are down close to 25% from the same time last year. The result is declining inventory levels. Low inventory, high demand. If you are considering selling your home, this is an opportune time. That is not hyperbole, it is factual. The data is overwhelmingly clear. Parenthetically, at Michael Saunders & Company, showing appointments were up 5% for the past week vs. the prior week. Click the link below to read the full MBA Mortgage Application and Purchase Index Report.