First American Financial Corp., Santa Ana, Calif., said rising home affordability is benefiting home buyers at a key point of the spring home buying season. “The interest rate-driven affordability surge arrived just in time for the spring home-buying season,” said Odeta Kushi, First American Senior Economist. “Home buyers have reacted positively to lower rates. When rates dipped just before springtime, applications for residential loans surged nearly 19 percent for the week.
While many of those applications were for refinances, there was also renewed interest in home buying. Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season. Combined with higher incomes, the good news for home buyers and the housing market is house-buying power is at its second highest point in over two decades,” Kushi added.
Source: First American