Fall is usually the start of the slower season for the housing market, but nothing is usual in today’s pandemic-driven housing market. Potential homebuyers are seeing a slight rise in inventory and consequently rushing back into the fray.
Mortgage applications to purchase a home jumped 7% last week from the previous week, seasonally adjusted, according to the Mortgage Bankers Association. An additional adjustment was made to account for the Labor Day holiday. That is the highest level since April of this year. These applications were still 11% lower than the same week one year ago, but that was the smallest annual decline in 14 weeks.
Buyers have been hamstrung by the meager supply of homes for sale, but that supply has been rising lately, albeit slowly. The number of new listings rose for nine straight weeks during the summer, but finally fell again last week, according to a Realtor.com report.