Mortgage Rates Fall to Record Lows as Demand Spikes
July 8, 2020
One of the more promising areas of the economy following the coronavirus outbreak has been the housing market. While most of the economy took an unprecedented hit, the housing market barely paused and has come back stronger than ever.
Mortgage rates for a 30-year fixed loan fell to a record low last week, signaling to more Americans that now is the time to buy. Accordingly, applications to purchase a home rose 5% for the week and increased by a massive 33% over the same period last year.
The strong demand for homes is being tempered by the lack of inventory. Fewer homes for sale and more eager buyers have conspired to drive prices higher. The average loan size last week was $365,700, a record high. Real estate data firm CoreLogic’s index of the top 20 markets in the country rose by 4.7%, the highest increase since 2018.