➤ Key Highlights
Mortgage purchase applications reached a three-year high as improved spreads kept rates near 6% for 18 weeks.
• 18 weeks of rates below 6.64% have delivered double-digit year-over-year growth.
• 11 positive week-to-week prints and 7 negative week-to-week prints have been recorded over the last 18 weeks.
• For the entire year, there have been 23 positive readings, 18 negative readings, and 6 flat prints.
• 44 straight weeks of positive year-over-year data have been recorded.
• 31 consecutive weeks of double-digit growth year over year have been recorded.
• The percentage of inventory growth has been cut in half, from 33% to 15.26% this year.
• Price-cut percentage has remained higher this year than last.
Mortgage purchase applications have reached their highest point in three years, supported by sustained lower rates and improved spreads. Data shows consistent double-digit year-over-year growth, with a majority of positive metrics recorded across the past 18 weeks. Inventory growth has slowed compared to last year, while price-cut activity has remained elevated.
This event highlights shifting patterns in consumer demand, where market signals are reflecting evolving tenant preferences and behaviors. Changes in application rates, inventory levels, and price adjustments demonstrate how consumers are responding to current market conditions. Observing these patterns can help illuminate broader trends in demand and the ways in which individuals adapt their housing decisions. The interplay of these factors underscores the importance of monitoring tenant behavior to understand ongoing market shifts.
⚠️ Why it matters now
For CRE360’s audience, understanding these evolving demand signals is crucial for anticipating shifts in tenant preferences and behaviors. Insights into how consumers react to changing rates, inventory, and pricing inform decisions across development, capital allocation, construction planning, underwriting, operations, and policy consideration. By focusing on the lens of tenant behavior, stakeholders can better align their strategies and expectations with the realities of current market activity.
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➤ TAKEAWAY
Continued observation of mortgage application trends and inventory levels may provide further clarity on how tenant preferences are evolving. Market participants could see ongoing adjustments in consumer behavior as rates and supply conditions change. Monitoring these signals will remain essential for anticipating future shifts in the housing environment.
