Several mortgage industries are reporting that FHA and VA refinance applications are up,  while for the last two weeks Mortgage Bankers Association reported home purchase applications are down while being seasonally adjusted.

Several questions are being asked,  Buyers have been watching the real estate industry pretty much alienate home buyers that don't have big money down, home buyers that may need a little help with closing costs, and home buyers that cannot pay over appraisal.  This is a very large segment of Arizona home buyers that may not have 100's of thousands to invest into a house, and are unable or unwilling to purchase crazy amounts over appraisal, but are definitely able to afford a home.

Although looking at the home affordability chart it looks like homes are still more affordable if you are purchasing a home with a low interest rate home loans.  Maybe NAR is a little too optimistic forecasting home prices going up an aggressive 6.0% for 2021, while MBA is forecasting 2%? 

Yes historically low rates, great weather, low inventory will still demand higher prices in Arizona. But at some point good old mom and pop with 3.5% down for a down payment, and could use a little help in closing costs, will start winning home purchases again. 

Prices and inventory of home chart

Perhaps, If COVID-19 cases are keeping buyers home, and sellers off the market (I think is a good idea, especially if you are high risk) these lower home loan applications numbers can be just temporary. 

Home sellers are still in the drivers seat, home loans rates are still historically low and affordable. We have to watch the home affordability index!  Perhaps this slight adjustment in home purchase mortgage applications is just a combination of the super high Covid-19 numbers, and people seem a little more festive with the holidays this year. Driving our neighborhood this week at night was a lot of fun seeing so many homes with Christmas lights. 

Wondering if homes are still getting multiple offers?  Are sellers still winning big?  Contact Us , we can help you win!