According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Jumbo loans saw a slight decline. Joel Kan, MBA’s vice president and deputy chief economist, says the increases slowed demand for mortgage applications week-over-week. “Mortgage rates edged higher last week … leading to another decline in overall applications,” Kan said. “The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates … are crimping affordability for many potential home buyers.” Overall, mortgage application demand – including purchase and refinance activity – was down 3 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The inventory of homes for sale has been low for years. In fact, supply has been an issue for most of the past decade. Then, it got worse during the pandemic. Low inventory has long been a frustration for home buyers – who have had to fight through the resulting affordability conditions, competition from other buyers, and a lack of choices when shopping for a home to buy. But according to a new survey of homeowners, there may be hope on the horizon. The survey found nearly a quarter of respondents say they are either listing their home for sale or considering selling their home in the next three years. That’s up from 19 percent during the first quarter of 2023 and 8 percent higher than last year at the same time. Additionally, 40 percent of respondents who said they’re considering selling say they think they’ll sell next year. That’s good news for buyers, as it’ll add much needed inventory to the supply of previously owned homes for sale. That’ll help calm price increases and offer buyers a better shot at finding their dream home. (source)

Among the many benefits of homeownership, equity is a big one. It refers to the amount of a home’s value that belongs to its owner. In other words, it’s the value of your home minus the amount still owed on the mortgage. Obviously, having equity is good – and these days homeowners have a lot of it. In fact, according to ATTOM Data Solutions’ most recent 2023 U.S. Home Equity & Underwater Report, 49 percent of mortgaged residential properties were considered equity rich during the second quarter – meaning their loan balance was no more than half the estimated market value of their home. That’s up from 47 percent during the first quarter and the highest it’s been in at least four years. Rob Barber, ATTOM’s CEO, says the market has bounced back and it’s benefiting homeowners. “The second-quarter market revival bestowed immediate benefits on homeowners around the nation in the form of better profits for sellers and rising equity for those staying put,” Barber said. “Equity levels were high even during the recent downturn, and now they are going back up and better than ever.” (source)