High prices and low inventory are finally taking some of the heat out of our Livingston County market. However, as interest rates fall slightly, mortgage application volume fell 4% last week from the previous week.
Applications to purchase a home fell 3% for the week and were 2% lower than a year ago. In addition, pending sales dropped 4.4% in April.
Buyers are hitting an affordability wall. "Tight housing inventory and rapidly rising home prices continue to hold purchase activity. As a result, the average contract interest rate for 30-year fixed-rate mortgages fell to 3.17% from 3.18% for 80 % loans.
Lower rates did not create more demand under refinance demand. Those applications decreased 5% from the previous week and were just 6% higher than a year ago. As a result, the refinance activity decreased to 61.3% of total applications from 61.4% the last week. "Even though rates have been below 3.20% over the past month.
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