(Reuters) - Applications for U.S. home mortgages fell last week to the lowest since December 2000 as interest rates rose for the first time in four weeks, an industry group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7.2 percent in the week ended Sept. 5.
The MBA's seasonally adjusted index of refinancing applications dropped 10.7 percent to the lowest since November 2008, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell 2.6 percent.
Fixed 30-year mortgage rates averaged 4.27 percent in the week, up from 4.25 percent the week before.
Total properties sold were down in Burbank, but up in the Glendale marketplace. Low inventory levels continue, although Burbank showed an increase in inventory over last year's numbers. Both cities showed increases in average price per square foot and average days on market.
Mortgage interest rates trended higher in the first and second quarters of the year, and it looks like the third quarter will end up by a slight margin. There is still a mixed sentiment from analysts in terms of when interest rates will start to head up higher in a meaningful way. While many analysts had predicted significantly higher rates into Q4 of this year, now those predictions have been amended to Q3 of 2015. The current global unrest will certainly add some volatility and is impacting the overall interest rate scenario, but keep in mind that rates abroad are very low and the US is still considered a safe haven.
Despite recent price gains there continue to be good values available for buyers in today's market.
Real estate stats
Single Family Home Sales
|Total properties sold||178||137|
|Average price (sold)||$647,332||$737,920||+14.0%|
|Average price per sq.ft.(sold)||$379||$420||+10.6%|
|Average days on market (sold)||40||42||+5.0%|
|Average sold price/list price %||101.2%||99.5%||-1.7%|
|Pending properties(at end of period)||78||66||-15.4%|
|Total properties for sale( at end of period)||80||93||+16.3%|
|Average price of properties for sale||$743,361||$856,720||+15.2%|
Single Family Home Sales
|Total properties sold||174||205||+17.8%|
|Average price (sold)||$743,738||$799,612||+7.5%|
|Average price per sq.ft.(sold)||$375||$407||+8.5%|
|Average days on market (sold)||47||48||+2.1%|
|Average sold price/list price %||100.9%||100.1%||-0.8%|
|Pending properties(at end of period)||82||49||-40.2%|
|Total properties for sale( at end of period)||119||119||+0.0%|
|Average price of properties for sale||$886,225||$871,229||-1.7%|
Report was generated using data from CRMLS. CRMLS does not guarantee and is not in any way responsible for the accuracy of their data. Data maintained by CRMLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.