Despite the fact the number of new homes on the market across the country was at a 13-year high in November, and inventory levels were 39 percent higher than the year before, mortgage application activity to purchase said homes dropped 5 percent in December and was down 7.1 percent on a year-over-year basis, according to the Mortgage Bankers Association.

At the same time, while the average loan size ticked up 2.1 percent to a record high of $423,102, the rise in the average loan amount is still being driven by a change in the mix, with purchase activity “tilted to higher-priced homes,” per the MBA, a key trend which shouldn’t catch (too many) plugged-in readers by surprise.

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