Mortgage News for the Week of July 10, 2020
Homebuyer Mortgage Demand Spikes 33%
  • Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago.
  • Home prices gains continue to accelerate, so low mortgage rates are giving buyers much-needed help.

Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago, according to the Mortgage Bankers Association’s index, which was seasonally adjusted, including for the Fourth of July holiday. Read more from CNBC.
Realtors Report that Their Customers are Back
A new survey by the National Association of Realtors® (NAR) has found that the vast majority of its members feel as though their businesses are back on track. NAR says, "After enduring months of setbacks brought on by the coronavirus pandemic...more than nine in 10 members believe they are in the process of recovering as many states start to reopen their economies." Read more from Mortgage News Daily.
Housing Market Recovery: Things are Looking Up
Philadelphia is one of the cities showing the greatest recovery.
The housing market continues to show positive signs of recovery, according to realtor.com’s weekly Housing Market Recovery Index, yet the effects of COVID-19 still remain a concern.

The index is set to 100 for the last week of January and a value of 100 means the market has recovered to the pace seen that month. Housing demand, home prices, pace of sales and inventory are all positively climbing, although still lower than that January baseline.

The Housing Recovery Index reached 95.8 nationwide for the week ending June 27 and 12 of the 50 largest markets are showing recovery, with the greatest occurring in Boston, San Francisco, Seattle, Denver and Philadelphia. Read more from Housing Wire.  
Consumers, Especially Renters, Are Feeling Much Better About Buying a Home
  • After plunging to nearly the lowest level in its history in April, an index measuring consumer sentiment in the housing market bounced back significantly in June.
  • Renters were especially optimistic about homebuying.
  • The share of consumers who think it’s a good time to buy a home increased from 52% to 61% month to month, according to the Fannie Mae survey
More Than Half of Redfin Offers Faced Bidding Wars for Second Consecutive Month in June
54% of Redfin offers faced competition as the supply of homes for sale and mortgage rates continued to fall in June. Single-family homes and townhouses were much more likely than condos to receive multiple bids. Read more from Redfin.
Pending Home Sales Pull Back Slightly
The housing market closed out the month of June on somewhat uneven footing as pending sales pulled back slightly despite low mortgage interest rates.

For the week ending June 28 pending home sales decreased 8.2% year-over-year, a sharp change from the revised 3.9% year-over-year increase a week earlier. However, after adjusting for seasonal effects the decline was only 3%. Read more from Redfin.
1 in 5 Americans Have Moved During the Pandemic
Millions of Americans have relocated this year due to the COVID-19 outbreak, according to the Pew Research Center. New data released this week shows that 22% of Americans either moved or know of someone who did.

The reasons vary, researchers say, such as college students moving out of dorms as schools closed abruptly, homeowners and renters leaving communities perceived as unsafe, and people moving from housing they could no longer afford. The findings are based on a survey conducted in early June of nearly 10,000 people. Read more from the National Association of Realtors.
Mortgage Market Update
Low Mortgage Rates Continue
The summer is heating up as low mortgage rates continue to spur homebuyer demand. However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth.
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
Plymouth Meeting Office: 610.834.8700
Doylestown Office: 215.345.7600
Ocean City, NJ Office: 609.398.8600

Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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