Purchase Mortgage Applications are Off to a Running Start This Summer:
This summer’s purchase season is off to a running start! As COVID depressed a usually busy time for home buying (Spring), the jolt in activity of purchase applications has caused Housing Wire to dub Summer the new Purchase Season versus Spring which had previously held the title. According to the Mortgage Bankers Association, mortgage applications have continued to spike throughout June. This is good news for those of you looking to flip your investment property this summer. Buyers are not only still out there, they also appear to be snapping up whatever inventory is on the market right now. Buyers are taking advantage of the excellent rates lenders are offering and ready to buy despite the current pandemic.
Low Rates Continue to Fuel the Housing Market:
According to the World Property Journal, “The average contract interest rates for 30-year fixed rate mortgages with conforming loan balances decreased to 3.30 percent from 3.38 percent, the lowest level in survey history, with points decreasing to 0.29 from 0.30 for 80 percent LTV loans.” Low interest rates have seemingly continued to spur home purchases this summer as mortgage applications spike week over week. Purchase applications spiked 18 %, with a 9.3% jump in applications from one week earlier for the week ending June 5, 2020 – Housing Wire
Summer Purchase Season is Creating a Seller’s Market with Limited Supply:
Despite the pandemic, Home Buyers are still out there ready to purchase their new home. This limited supply poses more of a challenge to find your next flip project but bodes well for selling your flip with a healthy demand for homes still viable and a positive housing outlook. Realtors suggest that they are still seeing a seller’s market despite the strict process mortgage lenders have enacted in response to the major lob losses due to the pandemic. The median price for a home, excluding new construction was up more than 7 percent from this time last year, the National Association of Realtors reported. The limited supply is even causing bidding wars in some markets. As we officially head into summer the continued uptick in purchase mortgage applications is a good indicator that the housing market has entered a V-shaped recovery.
Reach out to Pivotal to discuss financing for your next Flip Project or APPLY NOW. Pivotal is a direct lender with the resources to provide you the capital, expertise, and tools you need to succeed as a real estate investor.