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Mortgage Applications Point to a Remarkable Recovery in Homebuying

CNBC Article Highlights Encouraging and Surprising Statistics about Buyer Demand

Diana Olick, with, published an article this morning which probably surprised a lot of people … in a good way. The widely respected real estate reporter stated:

If mortgage demand is an indicator, buyers are coming back to the housing market far faster than anticipated, despite coronavirus shutdowns and job losses.

Diana Olick

The article went on to say, “Mortgage applications to purchase a home rose 6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Purchase volume was just 1.5% lower than a year ago, a rather stunning recovery from just six weeks ago, when purchase volume was down 35% annually.

In addition they reported, “As states reopen, so are open houses, and buyers have been coming out in force, if masked. Record low mortgage rates, combined with strong pent-up demand from before the pandemic and a new desire to leave urban downtowns due to the pandemic, are driving buyers back to the single-family home market. It remains to be seen if this is simply the pent-up demand or a long-term trend.”

Read Diana Olick’s Entire Post Here

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