Bankers report that big-ticket buyers are holding back on purchases
Despite government interventions to stimulate the housing market, demand remains stagnant as affordability questions arise and supply continues to shrink.
CNBC said in a report that the Mortgage Bankers Association (MBA) revealed that total application volume dipped 6% last week as the supply crisis trickled down to the mortgage market.
Further, the news outlet said that home purchase loans, specifically, fell by 4% this week, although they remain 8% higher than the rate recorded last year.
One stark contrast is the change in average purchase loan application, which took a nosedive since a year ago.
“We’re seeing indication that entry-level buyers continue to come into the market, as jumbo borrowers looking at bigger homes take a step back,” Mike Fratantoni, chief MBA economist, told CNBC.
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Mortgage applications fall in latest weekly survey
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CNBC said in a report that the Mortgage Bankers Association (MBA) revealed that total application volume dipped 6% last week as the supply crisis trickled down to the mortgage market.
Further, the news outlet said that home purchase loans, specifically, fell by 4% this week, although they remain 8% higher than the rate recorded last year.
One stark contrast is the change in average purchase loan application, which took a nosedive since a year ago.
“We’re seeing indication that entry-level buyers continue to come into the market, as jumbo borrowers looking at bigger homes take a step back,” Mike Fratantoni, chief MBA economist, told CNBC.
Related stories:
Mortgage applications fall in latest weekly survey
KeyStoneB2B launches new technology for mortgage lenders
