MBS: The market for buying houses takes a hit from COVID-19
admin | April 3, 2020
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COVID-19 is hitting the market for buying houses. Applications for new purchase mortgages in the week ending March 27 fell 10% compared to one week earlier, according to the Mortgage Bankers Association. This is the second consecutive weekly decline and applications are 24% below the same week in 2019. The MBA attributes the drop to poor economic conditions and a surge in unemployment. Even borrowers that remain employed may hold off on buying a home until economic conditions improve. Fears about contracting the virus may also inhibit buyers from viewing homes and sellers from allowing people into their homes. Applications for refinance mortgages increased 26% week-over-week in response to lower mortgage rates. The MBA summary is here. Source: MBA, APS.
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