There are a number of indicators that you can look at to give you some insight as to what is going on in the real estate market and loan activity is one of them. It is important acknowledge that we are in uncharted territory and the market is very fluid. So, this week we will take a quick peak at what is going on in the loan market:
Mortgage applications to buy a home fell 12% in the week that ended April 3 compared with the previous week, as first reported by The Associated Press. Applications dropped 33% compared to the same week last year, according to the Mortgage Bankers Association. Home buying applications are at their lowest level since 2015, the MBA said.
None of this seems to be a surprise since real estate sales were not considered an essential business until two weeks ago. Thus, no one could really meet with their clients, show property or see property. It will be interesting to see how the market responds now that there is a limited amount of interaction buyers and sellers can have. See my previous two posts about our regulations.