Mortgage applications saw an increase compared to the beginning of the month. This is due to a 13% surge in refinancing applications, up 188% from the same time last year. With rates still at a 3.5-3.7 percent average, homeowners are taking advantage to try and save more money.
Though affordability continues to be the biggest pain point for buyers, home affordability was at its best levels in over 3 years. There is more opportunity for those earning around $75,500 to afford a median-priced home. This is a positive growth from last year which saw only 56.4% homes sold to those making $71,000.
Next year is said to be a buyer’s market with a surplus of millennials and GenZ consumers entering the market. They are outpacing previous generations with a 3% increased share in mortgage origination. They’ve reached 46% compared to a fall for GenX and Baby Boomers to 35% and 17%. Mortgage amounts have seen similar amounts of growth. The median loan amount is around $232,000, a 7.3% increase than 2018. With more financial burdens, young buyers are interested in saving more money on monthly payments.
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