It wasn't very long ago that mortgage demand was heading right into the tank:
Mortgage rates shot higher last week, as stronger economic data stoked more fear that the Federal Reserve will not lower interest rates anytime soon. In turn, mortgage demand dropped to the lowest level since the end of February.
No, seriously, it wasn't that long ago. It was like a month ago. Barely four weeks.
But a lot can happen in 28 days, especially in a real estate market that hasn't stopped moving for like five straight years:
Mortgage rates turned higher again last week. But the increase did not cut into mortgage demand, as buyers sought newly built homes.
Total mortgage application volume rose 3% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. An additional adjustment was made for the Juneteenth holiday.
So at the end of May the mere possibility of the Fed's looming interest rate hikes were driving mortgage demand down. Now a month later, when mortgage rates are actually up, people are signing up for more mortgages? Is that right?
To be sure, mortgage applications are still more than 20% lower than the same time a year ago. Nevertheless, they've been steadily rising for about three weeks now. It would seem that "fear that the Federal Reserve will not lower interest rates" was not enough to keep people from that sweet sweet mortgage dough.
It seems the race continues between massive investment firms that want to own everything and stressed-out millennials shelling out half their income to afford a starter home or be priced out of the market forever!
Insanely tiny homes could be yours if you're willing to sacrifice everything!
Mortgage rates on Wednesday sat at about 6.75%, up from around 5.70% a year ago (remember how it was 3% just a few years ago??). Refinance applications, meanwhile, were about 3% higher this week as well.
