The typical winter slowdown of the housing market appears to be on hiatus this year as homebuyers continue to flood the market. Many potential homebuyers are concerned that mortgage rates will continue to rise as the year progresses and are making the choice to lock in a purchase before that happens.
According to the Mortgage Bankers Association, mortgage purchase loan applications increased two percent last week compared to the previous week. Purchase applications were down 17 percent on a year-over-year basis but experts point out that that is likely due to limited inventory slowing down the rate of home sales.
Still, the strong start to the 2022 housing market is indicative of a continuation of 2021’s high prices, competition and limited inventory.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
