Lisa Mailhot | November 21, 2023
Buyers
Are you thinking about buying or selling a home? The latest data from the Federal Reserve Bank of New York suggests that now might be the perfect time to make your move. Mortgage rejection rates are down year-over-year, and this is great news for both buyers and sellers in the real estate market.
One of the key reasons behind the decline in rejection rates is the higher creditworthiness among consumers applying for new mortgages in 2023. This means that a smaller group of mortgage applicants is meeting the criteria for approval, which is excellent news if you're looking to secure a mortgage for your dream home.
Not only are rejection rates down, but application rates have also seen notable changes over the past year. The average application rate for 2023 is 41.2%, which is lower than both the 2022 level of 44.8% and the pre-pandemic 2019 level of 45.8%. This suggests that while there are fewer applications, those who do apply have a better chance of success.
Mortgage loan application rates have also experienced a significant shift. In October, they declined to 4.3% from 6.7% compared to one year earlier. The 2023 average rate of 5.7% is 1.5 percentage points lower than in 2022 and 2.2 percentage points below the 2019 average. This trend indicates a more favorable environment for potential homebuyers.
If you're a homeowner considering refinancing, there's good news for you as well. Application rates for mortgage refinancing declined further during 2023, reaching 3.3% in October from 8.9% in the previous year. While these levels are below pre-pandemic levels, they still represent an attractive opportunity for those looking to refinance their mortgages.
The New York Fed's analysis also provides insights into future trends. The average likelihood of applying for a mortgage in the next 12 months decreased slightly to 6.7% from 7.3% in 2022. Meanwhile, the average likelihood of applying for a mortgage refinance reached a new low of 3.5% in October. These numbers suggest that the coming months may still offer favorable conditions for prospective homebuyers and refinancers.
The declining mortgage rejection rates indicate a more favorable real estate landscape. Whether you're a buyer looking to secure a mortgage or a homeowner considering refinancing, these trends could work in your favor. Stay tuned to our blog for more insights into the ever-evolving real estate market.
Reference: NY FED: MORTGAGE REJECTION RATES DOWN YEAR-OVER-YEAR
In November, existing-home sales reached a three-year high with a 6.1% annual increase, led by significant growth across three major U.S. regions. This blog explores t… Read more
Explore the challenges and solutions facing homeowners in areas known as "insurance deserts" where escalating premiums and climate risks make obtaining affordable cove… Read more
Housing starts in the US hit a 4-month low, with multifamily construction declining but single-family homes rebounding in storm-affected regions. Discover what this me… Read more
Explore the surprising trend of shrinking household sizes in the U.S. and how it has ushered in a golden age for guest bedrooms. With an all-time high in spare bedroom… Read more
Discover cutting-edge AI tools transforming industrial real estate by streamlining logistics, site selection, property management, and marketing. Let’s make your move … Read more
Stay updated with the latest shifts in the Southern California real estate scene for December 2024. From new divisions and leadership changes to significant industry a… Read more
Discover the differences between tax-assessed value and market value in real estate, and how these valuations affect your property transactions. Learn to navigate thes… Read more
Discover Hope Village, a groundbreaking faith-based affordable housing project in Walnut Creek, provides safe, stable homes for the homeless. Learn how this initiative… Read more
Dive into the effects of the Malibu wildfires on California's real estate landscape. From safeguarding properties to tackling insurance obstacles, this blog offers ess… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most