Home buyers are reflecting an invasion of interest in buying homes based upon the spike in new purchase mortgages. This reflects a 54% spike in mortgage applications since early April.
The number of refinance applications showed little change, but reflected a significant 176% jump from 2019. What is interesting about the refinance market is that interest rates were 91 basis points higher in 2019 and in 2020, and yet the lower interest rates are now.
What could also be factoring into the refinance market is that a number of banks have suspended home equity lines of credit temporarily.
The share of mortgage activity from refinances has decreased to 62.6% of total applications, which is less than the 64.3% reported for the prior week.
Home Buyer Demand Remains Strong
This clearly indicates that spring home buyers didn’t disappear, but rather waited on the sidelines until COVID-19 restrictions began to lift.
The other significant factor is that inventory remains at critically low levels. Most counties throughout the state of New Jersey show a reduction in inventory anywhere from 20 to 60% from 2019 levels.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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