Mortgage rates fell for the second straight week, but applications for mortgages were flat and applications for refinanced loans fell.
“Right now, higher interest rates, low inventories and high prices are keeping potential buyers out of the market,” Joel Kan, the Mortgage Bankers Association’s deputy vice president for economic and industry forecasts, said in a statement.
Interest rates continued to beat levels of the past two years at 5.46% for a 30-year fixed-rate mortgage. That was a drop of 5.49%.
Applications for a new mortgage were flat from the previous week and down 16% year-on-year. Refinance requests have declined in nine of the past 10 weeks, Kan noted. Compared to January 2022, mortgage refinancing is down 66%, he said.
Higher mortgage rates and rising home prices left new single-family home sales at a two-year low in April. First-time buyers were pushed out of the market. Sales fell 16% to 591,000 homes, Reuters reported, although the housing stock is at record levels.
A similar trend was evident in home sales, which also fell to a two-year low in April.
Builders, faced with shortages and higher prices, have not been able to start building all of the homes that have already been approved.
To help you stay current on the market, ZeroDown has compiled a weekly real estate market report in Greater Lebanon, PA using data from Redfin. Statistics are for the four weeks ended May 22, 2022. Metros with more than 50 homes sold during this period were included for the Metro-level rankings for each statistic.