Mortgage applications slide 2.8%, even as interest rates stay low.
There are 3 metrics that many real estate professionals look to when determining supply and demand of the market center around mortgages. This past week the Mortgage Bankers Association reported that its three primary metrics – total mortgages, mortgage applications to refinance, and applications to purchase a home – all fell for the week ending July 28th.
■ Total mortgage application volume fell 2.8% on a seasonally adjusted basis.
■ Mortgage applications to refinance a home loan fell 4%.
■ Mortgage applications to purchase a home fell 2% for the week.
Total mortgage application volume fell 22% as compared with the same week in 2016.
Also, mortgage applications to refinance were 41% lower than they were in 2016.
More importantly, mortgage applications to purchase a home were 9% higher than in 2016.
Buyers appear to be affected by the severe shortage of houses for sale in most markets, a condition that has been plaguing New Jersey for the last two years.
Other Stats
The refinance share of mortgage activity decreased to 45.5% of total applications from 46.0%.
The adjustable-rate mortgage share of activity decreased to 6.6% of total applications.
The Federal Housing Administration share of total applications increased to 10.3% from 10.2%.
The Department of Veterans Affairs share of total applications decreased to 10.1% from 10.5%.
The Department of Agriculture share of total applications remained unchanged at 0.8%.