Mortgage News Home Buying Costs are Falling
The big news in the mortgage market is that home borrowing costs have fallen, mortgage application volumes have surged, and these are just a few of the happenings in the sector.
Freddie Mac recently reported that home borrowing costs fell from the multi-decade highs seen in November while the Mortgage Bankers Association (MBA) reports the same trend in rates in the same time frame. Also, the MBA reports that despite mortgage application volume being lower from a year ago, there has been an uptick in the past month.
The MBA went on to say that if rates continue to fall and home prices cool further, it expects to see potential buyers come back into the market. Another good sign from the MBA was that the national median payment applied for by home purchase applicants fell 2.9% to $1,920 in December from $1,977 in November.
If the market sees a more normal rate of home price gains in the future, it could be beneficial to prospective homebuyers, especially those in the market for a first home.
And in the bigger picture, total costs to build homes have fallen. Lumber prices have plunged to the $500 level after spiking to $1,645 in 2021 when supply chains were locked up as the nation reopened after the pandemic. Lumber prices are now at levels seen in January 2020. The National Association of Home Builders recently reported that despite costs still being lofty, they have fallen for two consecutive months.
The American Dream of owning a home is the grasp of many and with six million homes being sold each year in the U.S., now is always the time to consider a purchase.
Source: Mortgage Market Guide/Guy Vetrano Bay Equity Home Loans
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