Mortgage applications have been on a steady decline, but the weekly mortgage application rate fell even further over the Thanksgiving vacation. The mortgage application volume was down 9.2% from the previous week, a dramatic dip in mortgages, even considering that mortgages tend to naturally be lower during holidays. The drop is largely blamed on a fall in refinancing, as well as uncertainty in the market from investors.
The weakness in refinancing is substantial, having fallen 16% from the previous week. Again, while this sort of drop is expected during a holiday week, it is still a significant blow to the market. That said, refinancing applications are still 61% higher than they were at the same time last year. Additionally, demand from home buyers is still high, and interest rates are still low enough that taking out a mortgage still seems appealing to consumers.
However, there is an additional factor potentially leading to the fall in mortgage applications aside from refinancing: uncertainty over how the housing market may be impacted by the 2020 elections. The housing market has long benefitted from low interest rates and eager investors, but these factors may change with the coming of a new presidential administration, or with a Congress that is less friendly to investors. Additionally, the announcement of stalled trade talks with China have caused a dip in the markets, which also affected stock prices and bond yields. For now, however, the housing market remains strong, even if the future remains uncertain.
Charles Rutenberg Realty is one of New York’s largest Real Estate companies with multiple offices providing a full suite of real estate services, including residential and commercial sales or leasing. We serve clients in Nassau, Suffolk, Queens, Kings, Bronx, Westchester, Putnam, and Orange Counties, and bring our knowledge and experience to bear in every transaction. If you are interested in buying, selling, or leasing real estate, give us a call at 516-575-7500 or visit our contact page.
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