The MBA reports that mortgage rates remained at record lows in the latest week which continues to support the housing market. The 30-year fixed-rate mortgage held at a record low 3.0% with 0.32 in points for the week ending October 9, 2020. The Market Composite Index, a measure of total mortgage loan application volume, fell 0.7%, the Purchase Index declined 2% while the Refinance Index fell 0.3%. Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting said, "Refinance and purchase activity continue to run well ahead of last year's pace, fueled by record-low rates and strong homebuyer demand."
The luxury home market got a boost in the third quarter of 2020 jumping 42% from the third quarter of 2019. That is the largest increase since 2013 when record-keeping began. However, sales of medium-priced homes rose just 3% while sales of affordable homes fell 4.2%, due in part to the pandemic-induced impact on potential home buyers at lower levels of wealth. Redfin chief economist Daryl Fairweather said, "Remote work, record-low mortgage rates and strong stock prices during the pandemic are allowing America's wealthy families to gobble up expensive houses with home offices and big backyards in the suburbs."
Mortgage rates remain at record lows. Mortgage application activity stalls. Luxury home sales soar.
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