The Market & Industry: Mortgage applications up, many homes seeing multiple offers

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Buyer demand remains robust, with mortgage applications 22 percent higher than they were a year ago. Redfin surveyed homebuyers planning to purchase in the next 12 months and found that three out of four have had their plans impacted by the pandemic — and one out of four want to move or speed up their move as a direct result of the pandemic. With mortgage rates hitting a new low of 2.88 percent the week ending on August 6, August is shaping up to be the homebuying peak of 2020 (typically, May sees the most homebuying activity).

Multiple offers and bidding wars are holding strong in California’s luxury markets, and as more employees are able to work from home,rents are being driven down in expensive metro areas.

There does seem to be a mismatch between buyer demand and available inventory, with listings down 6.8 percent last week. That sellers remain cautious — even with homes selling so fast and often facing multiple offers — suggests recovery may be slower than hoped for, and buyers who are eager to purchase may not be able to afford to.

Sources: C.A.R. Research & Economics, REALTOR® Magazine, Redfin, Forbes, Inman News, Zumper