The housing market has been solid of late, powering through Q1 of 2021 and showing no signs of slowdown as Q2 wraps.
While trends have been inconsistent, mortgage rates remain at all time lows, hovering around the 3% mark, and mortgage application volume has suffered not so much for a waning in desire to buy homes, but a lack of homes available on the market.
This week, the Mortgage Bankers Association (MBA) will release its Weekly Mortgage Applications Survey which has found an inconsistent rise and fall in application volume over the past few months.
As Joel Kan, MBA's Associate VP of Economic and Industry Forecasting, said, “Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices."
The one constant remains … refis. Those already comfortably in their home with no desire to uproot or seek larger accommodations elsewhere are stashing more away into their savings each month as low rates remain refi-friendly, rising only temporarily above the 3% mark over the past few weeks, only to dip back under 3%.
Refis continue to garner a lion’s share of mortgage applications, comprising 63.3% of all mortgage application volume last week alone.
More will be known come Wednesday when the MBA releases its Weekly Mortgage Application Survey, and on Thursday when Freddie Mac issues its take on rates with its Primary Mortgage Market Survey (PMMS). Both metrics may be impacted by the Memorial Day Holiday, but will provide more insight into the state of the housing market as Q2 2021 gives way to Q3.
Here's what else is happening in The Week Ahead:
- MBA Forbearance and Call Volume Survey (Tuesday)
- Realtor.com Weekly Housing Market Recap (Wednesday)
- U.S. Department of Labor's Unemployment Insurance Weekly Claims Report (Thursday)
- Black Knight weekly forbearance data (Friday)