Your cart is currently empty!
Highest Purchase Applications in a Year? Technically, Yes
The Mortgage Bankers Association’s (MBA) weekly mortgage application survey showed a modest decrease in refinance applications and an even more modest increase in purchase applications. At these levels of movement, it’s just as fair to say that applications generally held steady.
That’s a good thing for purchases considering last week was already at the highest levels in nearly a year, but again, there’s no real change from the previous week.
The more we zoom out, the more sobering the context becomes. The counterpoint is that this context is also optimistic because short of a major meltdown in the housing/mortgage market, there’s really nowhere to go but up.
Refinance demand will always be more closely tied to interest rates. As such, it’s no surprise to see low levels persist as rates remain elevated compared to the lows seen several months ago. On a positive note, present levels are still about 30% higher than the late 2023 lows.
The big picture view of refi apps reminds us of a different time, when each new long-term low in rates meant that most mortgage holders could benefit from a refi.
Other highlights from this week’s data:
- Refis accounted for 40.4% of the total, down from 42.7 last time
- Adjustable rate mortgages accounted for 5.5% of the total
- FHA loan were 16.5% of the total, down from 16.9%
- VA loans were 14.6% of the total, down from 15.7%
In the world of real estate, it is not uncommon for potential buyers to submit multiple purchase applications in a year as they search for their dream home. However, what sets some buyers apart is the sheer volume of applications they submit within a short period of time.
This phenomenon, known as “shopping around” or “application stacking,” can occur for a variety of reasons. Some buyers may be in a rush to secure a home before prices rise, while others may be struggling to find a property that meets their needs. Whatever the motivation, these high-volume buyers can create a surge in purchase applications that can be both a blessing and a curse for lenders and real estate agents.
While submitting multiple purchase applications in a year is technically allowed, it is important for buyers to be aware of the potential consequences. Lenders may view excessive applications as a red flag, leading to delays in the approval process or even denials. Additionally, repeatedly submitting applications can have a negative impact on credit scores, making it more difficult to secure financing in the future.
In conclusion, while it is possible to submit a high number of purchase applications in a year, buyers should proceed with caution and be mindful of the potential risks involved. By working closely with a knowledgeable real estate agent and lender, buyers can navigate the application process successfully and increase their chances of finding the perfect home.
Tags:
- Highest purchase applications
- Yearly purchase applications
- Top purchase applications
- Record-breaking purchase applications
- Best purchase applications of the year
- Most popular purchase applications
- Yearly purchase trends
- Purchase applications statistics
- High demand purchase applications
- Purchase applications growth trends
#Highest #Purchase #Applications #Year #Technically
Leave a Reply