Despite shutdowns due to the coronavirus and job losses, mortgage applications to purchase a home are on the rise. That could mean buyers are headed back to the housing market faster than expected.
According to recently released data from the Mortgage Bankers Association, mortgage applications to purchase a home rose six-percent last week over the previous week. While purchase volume was down 35-percent annually six weeks ago, recent figures reflect purchase volume is now down just 1.5-percent over a year ago.
Reports suggest buyers are being lured to the single-family home market, in part, by extremely low mortgage rates. It’s also said that the pandemic is causing some people to rethink their desire to live in an urban setting, and instead pursue a single-family home lifestyle.
Economists report applications for home purchases have increased five weeks in a row. Government purchase applications are about five-percent higher than a year ago, which some see as encouraging news compared to the past couple of months.