Wednesday, May 6, 2020 / by Teresa DiPeso
- The average contract interest rate for 30-year fixed-rate mortgages decreased to a record 3.40% from 3.43%.
- Mortgage applications to purchase a home rose for the third straight week, up 7% compared with a week earlier.
- Refinance applications decreased 2% for the week but were 210% higher than a year ago, when rates were over a full percentage point higher.
Home buyers appear to be heading slowly back into the market, as the coronavirus-stricken economy begins to reopen.
Total mortgage application volume rose 0.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The gain was driven entirely by buyers.
Mortgage applications to purchase a home rose for the third straight week, up 7% from a week earlier. Purchase volume was still 19% lower annually, but that annual loss is shrinking by the week. Just three weeks ago, purchase volume was down 35% annually.
Buyers are responding to incredibly low interest rates as well as to new technology and processes that allow them to house-hunt from afar. Agents are offering virtual showings or live tours over apps like Facetime or Zoom. For empty homes, they’re also allowing do-it-yourself tours, using high-tech lock-boxes that buyers can access from their smartphones.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 fell to 3.40% from 3.43%. The new rate is a record low for the weekly survey, which began in 1990. Points decreased to 0.30 from 0.34, including the origination fee, for loans with a 20% down payment.
Are you thinking about buying or selling a home? Now may be the time. Interest rates are historically low and the number of homes for sale has steadily decreased over the past few years. If you have questions about the local real estate market, call us. We would be happy to answer questions and help you buy, sell and rent at the Jersey Shore!