Share
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update, highlighting mortgage purchase applications, is after the jump.
- Mortgage purchase applications fell 6.1 percent for the week ending February 25th. Purchase applications are a leading indicator of home sales.
- However, purchase applications do not always translate into loan acceptances and transactions. Also, purchase applications do not take into consideration cash buyers who according to the January REALTORS® Confidence Index make up as much as 32 percent of transactions. In Las Vegas and Miami, the cash purchases have said to approach 50 percent.
- Mortgage purchase applications were down 19.4 percent from the same week a year ago.
- Consumers took advantage of a decline in mortgage rates, as they fell to 4.84 percent on a 30-year fixed mortgage. Refinances, which accounted for 64.9 percent of mortgage activity, fell 6.5 percent.
- Private payrolls increased 217,000 in February according to the ADP report. This is a positive sign, but more official numbers come out this Friday from the Department of Labor. While the numbers differ at times, they are highly correlated as the chart below shows:
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.