Many Americans are rethinking and recognizing the importance of home as mortgage applications spike amid historically low interest rates. The 30-year fixed-rate mortgage averaged 3.21% last week according to the Mortgage Watch, signaling increased buying power for house-hunters in today’s market.
Mortgage applications for home purchases rose 4% over the last week, 21% higher than just one year ago, according to the Mortgage Bankers Association’s seasonally adjusted index. Enticed by low rates and increased buying power, homebuyers are hungry for more inventory.
Increased Buyer Demand
As Coronavirus has kept individuals and families quarantined for the past three months, American mindsets are shifting to recognize the true value of a home in these unprecedented times. The increase in home buyer demand is further evidence of the Southern California real estate market rebound occurring. Pending sales and new listings are on the rise, but limited inventory is certainly an issue facing house hunters today.
“We are experiencing record high prices and record low days on the market across SoCal, creating a super hot seller’s market,” explains Michele Harrington, COO and Broker of Record at First Team Real Estate. “Inventory is so low that it can be hard for all of the qualified buyers we are currently working with to find a home because there simply aren’t enough listings to match the increased demand.”
All Good News For Southern California Homeowners
This spike in mortgage applications is the release of pent-up demand from earlier this spring, and confidence returning to home buyers as we recover from the COVID-19 outbreak. For current homeowners across Southern California, this marks a particularly advantageous opportunity to sell for top dollar and secure a low mortgage rate to afford their dream home.