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."