Why didn’t double-digit growth in purchase apps lead to more home sales in 2025?
Summary
This article discusses the importance of week-to-week purchase application data over year-over-year data when analyzing the housing market, suggesting that positive week-to-week prints and year-over-year growth are indicators of future sales growth. For hosts, understanding market trends and the impact of mortgage rates is crucial to anticipate demand and adjust their strategies accordingly, especially as the low baseline of 2025 growth won't apply to 2026.
Key Insights
- •Purchase application data looks out 30-90 days, so it’s a good indicator of future sales growth when we have positive week-to-week data and year-over-year growth.
- •Housing data tends to improve when mortgage rates head below 6.64% and down toward 6%.
Action Items
- ✓Monitor week-to-week housing data and purchase application data to anticipate future trends in the market.Effort: lowImpact: medium
Tools & Resources
- →Housing Market Tracker: The article mentions the 'Housing Market Tracker' will be constantly updating the mortgage purchase application data.
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