The first week of 2020 brought a resurgence in the housing market, starting the year off strong for mortgage applications. The rise in applications is credited to low interest rates, which have spurred an increase in both home purchases and refinancing by current homeowners. In fact, demand by new homeowners has risen to the highest level it has been since October 2009, according to the Mortgage Bankers’ Association.
Weekly mortgage applications went up more than 30% during the first week of the year, compared to the week prior. The rise in mortgage applications is heavily reliant on the number of refinancing applications, which were up 43% for the week and 109% higher than the same time last year. Refinancing applications made up 62.9% of all mortgage applications, up from 58.9% the previous week, when the mortgage market (and refinancing in particular) was experiencing a holiday slump.
Refinancing increased for both conventional loans and for government loans, bolstering the overall market. However, despite this boost, refinancing is still significantly lower than it was during the fall of 2018. Purchasing applications, on the other hand, were up 16% from the previous week, and up 8% from the previous year. Purchasing demand is strong enough that agents were holding open houses the first week of January, when, typically, they wait until at least February for open houses. In fact, the main thing holding back purchasing is a lack of available inventory; in other words, there isn’t enough housing supply to meet housing demand right now.
In this kind of market, it’s important to have an agent to help you find a house that meets your needs. 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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