Real Estate

Weekly mortgage application volume drops 11% as rates spike and Texas power outages hurt demand

Total mortgage application volume fell 11.4% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages increased to 3.08% from 2.98% last week.
The severe winter weather caused a more than a 40% drop in purchase and refinance applications in Texas last week, the Mortgage Bankers Association said.

December pending home sales drop as buyers face record high prices and low supply

The pending home sales index from the National Association of Realtors fell 0.3% month to month, the fourth straight monthly decline.
Pending sales were, however, 21.4% higher than December 2019, and this was the highest December reading on record.
“Pending home sales contracts have dipped during recent months, but I would attribute that to having too few homes for sale,” said Lawrence Yun, NAR’s chief economist.

There’s ‘a lot of opportunity’ in real estate as pandemic pinches property market, says investor

There is “a lot of opportunity” for investors to take advantage of distressed real estate assets, according to one of London’s prime property investors.
Montague Real Estate’s Thomas Balashev said the current economic downturn had devalued otherwise sound assets.
Investing opportunities are available across the globe, said Balashev, noting an uptick in interest from investors in Asia.

‘It’s going to be ugly,’ analyst says as mortgage rates suddenly spike on shocking jobs report

The average mortgage shopper may see rates on the 30-year fixed as much as a quarter point higher, said Matthew Graham, COO of Mortgage News Daily, which runs daily averages from lenders.
Mortgage rates loosely follow the yield on the 10-year Treasury.
“It’s going to be ugly,” Graham said. “Today is the first time since the Covid-19 market reaction settled down in March that interest rates truly have a reason to panic. Until further notice, this looks like liftoff.”

Real estate is still a popular investment pick. Here’s what you need to know about buying in a downturn

The coronavirus pandemic has made us all a lot more familiar with our homes. But it has also thrown up a great number of questions over the future of the property market.

While global markets were thrown into turmoil in the early days of the outbreak, the property market, broadly speaking, has remained resilient. As of April, the median U.S. house price rose 8% year on year to hit $280,600.