The mortgage bankers association released numbers Wednesday that showed new purchase mortgage applications fell 4% from the previous week. Overall loan application volume increased 1.2% partly due to a 4% increase in refinance applications.
Interest rates rose to an average 3.15% last week. FHA applications fell to 9.2% of total applications, down from 9.9% the week prior. Refinance share of mortgage activity rose to 63.3%, up 2% from the previous week.
This tells us that FHA buyers are having a hard time competing in this market. It could also mean more buyers are paying cash, squeezing out buyers who need a loan. When new purchase mortgage applications fall we always want to look at the reasons.
Local housing inventory has fallen again since last month. Today we are tracking 1,070 homes for sale in Lee County. That number was 1,110 in April. That may not sound like much, but it has been a recurring theme for a long time.
Buy Now-Sell Home After You Move
The Ellis Team is excited to bring SW Florida a solution to this low inventory market. Many people would love to purchase a home but have a home to sell first. Local sellers are not accepting home sale contingencies. Buyers with a home to sell are stuck. They do not wish to sell and be homeless, and yet they would make a move if they could. We have a solution for this.
Basically, we find you a home to purchase, and our lender gives you a loan on your new home and does not count your existing home as a payment on your credit. Furthermore, buyers receive 6-months of no payments interest free on that existing loan which is plenty of time to sell it in this hot market after you close and move into your new home. The lender does not require an appraisal on your current home.
This solves the problem of not having a place to go when we sell your home because you will already be in your new place. As home values appreciate, you will gain appreciation on your new home and the old one you are going to sell.
Call Now to Get on the List
The Ellis Team at Keller Williams will begin offering this service in the coming weeks, so reach out to Brett and Sande today 239-310-6500 if you would like to move to a new home and are afraid how you can accomplish this with such low inventory.
Locals are getting outbid by out of state buyers looking to relocate to Florida. Many out of state buyers have more cash to compete on offers. Our new program will not make you homeless. We have the luxury of waiting until you find a home that works for you before selling. Most local home sellers are afraid to make the move and become homeless. This is why the Ellis Team has been working so hard to find a solution for local home sellers.
How much fun would it be to secure a new home, move in, and sit back and collect multiple offers on your existing home with no financial pressure? We are doing our best to give locals a fighting chance. Essentially, we turn you into a buyer with nothing to sell, so your offer looks better when competing against other offers.
Next week’s article will focus on updated local housing inventory numbers to put this in perspective. Now is the best time to sell your existing home, no question about that. If we can solve the home buying part, this mathematical equation begins to look a lot better for current homeowners looking to upgrade their situation.
If you are curious to your home’s value, visit www.SWFLhomevalues.com for a free and instant value. Or you can always speak with Brett or Sande 239-310-6500
Good luck and Happy House Hunting!