The rapid increase in mortgage rates has created a higher demand and lowered the amount of homeowners who are wanting to refinance.
Market is still hot
Even still, the market is hot and buyers are buying up everything in sight.
There is a surge of first time home buyers trying to buy before interest rates increase further. Recent statistics show a rapid increase in interest rates, lowest refinancing activity in 2 years, yet high demand in home buying applications. Loan amounts on applications are averaging record highs, pointing to low supply of cheaper homes, inflated housing prices, and high demand of home buyers.
“Some lenders I work with say they have had more first-time homebuyer applications in the last couple of weeks than they’ve seen in 20 years,” said Paul Legere, a buyer’s agent with The Joel Nelson Group in Washington, D.C
Another contribution to the larger loan balances could be from the lack of government purchases, alluding to first-time home buyers unable to find affordable homes in their price range.
As the housing supply has not increased, the demand becomes greater, and prices and rates will most likely continue to soar in the coming months.
Let’s get you in while rates stay low, contact us today!