We have seen a continuation of the downward trend in mortgage applications, with this being the 6th straight week of decline. This is a concerning development for the real estate industry, as fewer applications could signal a slowdown in the housing market. Despite a slight decline in mortgage rates, applications decreased for a sixth consecutive week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Oct. 28.
CoreLogic Report: Affordable Areas Thrive Amid Home Price Growth
Even though home sales and the number of mortgages continued their months-long declines in September, annual home price increases remained in the double digits. Compared to the same month in 2021, the CoreLogic Home Price Index (HPI), the first look each month at prices from the previous two months, increased by 11.4% this year. Even if mortgage rates are rising, the appreciation of the prior year is still substantial. However, preference is slowing, and month-to-month variations have become negative. The growth rate dropped from August to September by 0.5%.
Home prices fuel homebuyer enthusiasm for properties in relatively cheaper places in more expensive states on the West Coast and Northeast. According to CoreLogic, the conditions in the Southeast may benefit from this out-migration. Florida has led the country in home price growth for eight straight months.
Next week’s potential market-moving reports are:
- Monday, November 7th – Consumer Credit
- Tuesday, November 8th – NFIB Small Business Index
- Wednesday, Nov. 9 – N/A
- Thursday, Nov. 10 – Initial Jobless Claims, Continuing Jobless Claims, Federal Budget
- Friday, November 11th – Consumer Sentiment
As your Hawaii mortgage professional, I am happy to assist you with any information you may need regarding Oahu home mortgage or real estate trends. I welcome the opportunity to serve you in any way I can. Please reach me at (808) 517-6416 or elias@C2Hawaii.