For most of the last two years, the mortgage market has been dominated by refinances thanks to persistently low interest rates. But the market seems to be shifting back to purchases this year.
August saw the demand for new homes rise for the first time since March. However, it looks like August's increase may have been an outlier, as a new report shows that new home demand declined in September.
It was much the same song when it came to home prices in August; they just keep going up and up and up.
Traditionally, home sales tend to cool off as the calendar reaches the winter months, with some homebuyers and sellers focusing on the holidays instead of the housing market. New data shows that might be the case this year as well.
Over the last few months, new home sales have stemmed the tide that saw sales decline in April, May, and June. But the modest increase seen in July and August's continued improvement doesn't hold a candle to what happened in September.
For a housing market in need of more new homes going up for sale, relief may be on the way as a new report shows that construction of new single-family homes is still on track to see a sizable increase over last year.
Existing home sales are on a bit of a rollercoaster right now, having fallen for four straight months, climbed in June and July, then retreating in August. And now, existing home sales are on the way back up.
Earlier this year, Fannie Mae and Freddie Mac announced new refinance programs targeted at lower-income borrowers who previously may not have been able to refinance their mortgage to decrease their monthly payment. Aiming to allow more people to take advantage of the current market’s lower interest rates, the companies will soon be expanding these programs.
Those seeking a mortgage found it was a little easier to get in September than it was in August, as newly released data showed that mortgage credit availability increased in September. That marks the third straight month that it's gotten easier to get a mortgage.
For most of the year, the mortgage market has been much more focused on purchase lending than refinances. That changed in August when the refinance share of the mortgage market back climbed above 50% for the first time since February. That shift appears to have been short-lived.