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Buyers Hope To Benefit From Slow Winter Months

Though winter is usually a slow time in the mortgage industry, demand is on the rise this January as increased inventory keeps buyers in the market.


Typically, cold winter temperatures keep potential buyers sidelined in the early months of the year. Plus, kids are still in school, making it a complicated moment to upend everything and move.


Less competition leads to lower costs as lenders try to stir up business. Buyers can also monopolize the attention of loan officers, getting more personalized service while customers are scarce.


This winter seems primed to upend that trend. Buyers who have been sitting on the sidelines find they can’t keep waiting to buy.

Read more from The Mortgage Note.

December Data Shows Year-Over-Year Increases Across All Loan Types

New numbers show year-over-year growth in mortgage activity, offering a glimmer of hope for industry professionals as 2025 begins.


On Tuesday, Optimal Blue released its December 2024 Market Advantage mortgage data report, which shows that lock volume was up 26% YOY, driven by an 18% increase in purchase locks, a 43% rise in cash-out refinances, and an 82% jump in rate-and-term refinances.


Brennan O’Connell, director of data solutions at Optimal Blue, said these numbers illustrate how the market is adapting to shifting conditions, remaining resilient.


He pointed out that mortgage rates last month were comparable to what they were at the end of 2023 during an interview with The Mortgage Note.


“It gives me confidence that, even in this rate environment, which isn’t really much better than it was a year ago, you’re seeing an improvement in purchase lending,” O’Connell said.

Read more from The Mortgage Note.

Get the Latest Local Housing Market Data from Long and Foster's Market Conditions Report

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Single-Family Home Construction Rises in December

Construction of single-family homes rose last month despite pressure on the housing market from higher mortgage rates.


Single-family housing starts, which account for the vast majority of all homebuilding, rose 3.3% in December from the prior month to a seasonally adjusted annual rate of 1,050,000, the U.S. Census Bureau reported Friday.


Total housing starts, including multifamily units, were at 1,499,000 annualized last month—up 15.8% from November. However, that figure was down 4.4% from a year earlier.


For all of 2024, an estimated 1,364,100 housing units were started—a decline of 3.9% from the 2023 figure of 1,420,000. Completions, on the other hand, rose 12.4% from the prior year to 1,627,900 total units finished in 2024.


“While new construction picked up between November and December, there are still headwinds in the homebuilding sector,” says Bright MLS Chief Economist Lisa Sturtevant.

Read more from Realtor.com.

Buyers Most Interested In Turn-Key Properties

Prospective homebuyers are most interested in put-together homes that require few renovations in 2025.


More than half of home shoppers said the condition of a home is the most important factor in their search, according to a new survey from Bright MLS based on responses from nearly 700 Americans.


While 56% said a turn-key home was very important, another nearly 38% said the condition was somewhat important.


Assuming good condition, the number of bedrooms, a garage, and a primary en-suite were ranked the most desirable features. Less important but still preferred were front porches, energy-efficient green features, and a large yard.

Read more from The Mortgage Note.

We hope you enjoyed this Market News Update. For more information about how we can help you, please contact us.

Plymouth Meeting: 610.834.8700

Doylestown: 215.345.7600

NJ: 609.398.8600

info@phillyadvisors.com

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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 and MD Mortgage Lender #23004. NMLS #128570.