Obviously, COVID-19 has had an impact on the housing market and has created new challenges for potential home buyers to effectively locate and purchase their dream home. It appears, however, that we have turned the corner and the spring market is finally heading in the right direction.
According to the Mortgage Bankers Association’s seasonally-adjusted index, mortgage applications to purchase a home increased 6% week to week, which represents five consecutive weeks of improvement. As a whole, purchase volume is just 1.5% lower than last year at this time, which is amazing considering the challenges presented by COVID-19. To put it in perspective, just six weeks ago, purchase volume was down 35% from the same time last year.
Combining increased purchase volume, along with record-low mortgage rates, it’s no surprise that buyers are ready and willing to come back to the housing market. As this demand continues to build, it is fully expected that more homes will begin to hit the market in the coming weeks!
Sources: https://cnb.cx/2LOs6fX
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By: Jon Iacono