Why did home prices hit another record high in June?
Romer Debbas managing partner Pierre Debbas provides insight into how long the ‘robust’ housing market will last.
People are jumping back into the housing market as interest in purchasing a home rose for the first time in nearly a month.
The seasonally adjusted Purchase Index increased 2% from one week earlier, according to the latest survey from the Mortgage Bankers Association.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3 percent increase in FHA loans," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "With low for-sale inventory keeping home-price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices."
NEW HOME SALES UNEXPECTEDLY FALL IN JUNE
Overall demand for mortgage applications increased 2.8% from the prior week.
The Refinance Index increased 3% from the previous week.
The interest rate for 30-year fixed-rate mortgages increased to 2.99% from 2.97%.
"Rates slightly rose but remained below 3%, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report," said Kan. "Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021."
CLICK HERE TO READ MORE ON FOX BUSINESS
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.
Source: Read Full Article