Following a surge in May, mortgage applications for home purchase have since stabilised at a level around 25% higher than last year. Pent-up demand, record low mortgage rates and some evidence of increased demand for larger homes in the suburbs have outweighed the impact of high unemployment, tight credit conditions and record low inventory. Those factors will continue to offset each other, and applications for home purchase will see little further upward movement over the remainder of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services