Mortgage rates are down and it appears homeowners have caught on and the industry is enjoying a refi boom. Mortgage refinance applications were up about 45% from the prior week.
Lower rates, though, don’t seem to be creating significant numbers of potential homebuyers. Applications to purchase a home were up — but only by about 10%, according to the Mortgage Bankers Association. That’s still a nice gain, but not what you might be hoping for.
Average-priced homes are selling — and there are an ample number of buyers for those homes — but there is no great rush. At least not what you would expect, considering where rates are today.
Hopefully, the home buying rush is just delayed for some reason. Rates are as low as one could hope and credit is there for qualified borrowers. This week will bring more news about still low rates. There is really no reason for anyone with the desire to own a home and the financial means to manage the payments to shy away from buying right now.
Inventory may be light in the most affordable segments of homes for sale — but to not be out there taking advantage of this rate environment just doesn’t make sense.