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.
“The 30-year fixed rate decreased for the first time in over two months to 7.06% but remained close to its highest since 2002,” said Joel Kan, MBA Vice President, and Deputy Chief Economist. “Apart from the ARM loan rate, rates for all other loan types were more than three percentage points higher than they were a year ago. These elevated rates continue to put pressure on both purchase and refinance activity and have added to the ongoing affordability challenges impacting the broader housing market, as seen in the deteriorating trends in housing starts and home sales.”
CoreLogic: Thriving Home Price Growth in Less Expensive Areas as Other Regions Moderate
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, appreciation from the previous year is still substantial. However, appreciation is definitely slowing and month-to-month variations have become negative. The growth rate dropped from August to September by 0.5%.
Homebuyer enthusiasm for properties in relatively cheaper places is probably being fueled by home prices in more expensive states on the West Coast and Northeast. According to CoreLogic, the states 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, November 9th – N/A
- Thursday, November 10th – 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 possibly can. Please feel free to reach me at (808) 517-6416 or elias@C2Hawaii.