The volume of mortgage applications to purchase a home dropped for the second week in a row. That could potentially signal waning demand in the Boston housing market, says the trade group that collects the data.
Nation real estate mortgage applications drop
Barrons reported: Purchase applications for the week ending June 26 dipped 1% from the week earlier on a seasonally-adjusted basis and 2% on an unadjusted basis, the Mortgage Bankers Association said in a Wednesday data release. Despite the week-over-week drops, the index is still 15% higher than it was during the same period one year ago, the release said.
However, Boston is enjoying a better outcome comparatively.
Realtor.com, a national site for real estate listings and information, found that the Boston housing market is the second most recovered out of the 50 largest metro areas in the country as of the week that ended June 13. Realtor.com’s Weekly Housing Index relies on search traffic on the site, median list prices, new listings, and median time on the market, all compared with the January 2020 market trend. The firm’s data indicate that Boston was on track to see the busiest housing market on record in the spring until the pandemic hit.
“Our data shows the Boston market is experiencing a swifter recovery than the US overall,” said Javier Vivas, director of economic research for realtor.com. “Asking prices are growing at near double digits, and while sellers have yet to come back in full strength, the pace of sales is comparable to this time last year, bucking the national trend that has yet to see time on market catch up. The number of active home shoppers remains high and growing, as lower mortgage rates and a resilient tech sector continue to power demand.”
In fact Boston Agent Magazine June 22, 2020 edition, shows that Boston’s housing market made a Recovery Index of 106.7, making it one of the eight markets to surpass the January 2020 baseline. It showed a 3.70% increase in its Recovery Index compared to the previous week.