Having dropped to a 9-year low last week, the seasonally adjusted volume of applications to secure a purchase mortgage loan for a home in the U.S. has since jumped 25 percent but remains 35 percent lower than at the same time last year, according to data from the Mortgage Bankers Association.
Closer to home, pending home sales in San Francisco have just dropped to their lowest level in over six years and are down over 40 percent on a year-over-year basis, as projected, with an average list price per square foot that’s 15 percent below last year’s peak and trending down.
Could this be due to pricing adjustments elsewhere?
KB Home reports 68% new home cancellation rate for Q422.
Or as we outlined last month: New Home Demand Down 25 Percent, Average Loan Size Drops, despite new home inventory hovering around a 15-year high, none of which should catch any plugged-in readers by surprise.
I think it’s probably because people can suddenly this week or so get 30 year mortgages in the low 5s from Wells Fargo or similar.
UPDATE: While the seasonally adjusted volume of applications to secure a purchase mortgage loan for a home in the U.S. ticked up another 3 percent over the past week, it was down 39 percent on a year-over-year basis and “homebuying activity remains tepid,” despite a decline in mortgage rates over the past few weeks.