Columbus, Indiana Real Estate Weekly Update | State
Mortgage rates fell for the second week in a row, but mortgage applications remained flat and refinanced loans fell.
“Currently, higher rates, low inventory and high prices are keeping potential buyers out of the market,” Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association, said in a statement.
Rates continued to rise above what they have been for the past two years, with a 30-year fixed rate mortgage at 5.46%. It was down 5.49%.
New mortgage applications were flat from the previous week and down 16% from a year ago. Refinancing applications have fallen in nine of the past 10 weeks, Kan noted. Compared to January 2022, mortgage refinancing is down 66%, he said.
Rising mortgage rates and soaring home prices left sales of new single-family homes at their lowest level in two years in April. First-time buyers have been forced out of the market. Sales fell 16% to 591,000 homes, Reuters reported, even as housing stock hit record highs.
A similar trend prevailed with sales of previously owned homes, which also fell to a two-year low in April.
Builders, faced with shortages and higher prices, were unable to begin construction on all the homes already approved.
To help you stay up to date on the market, ZeroDown has compiled a weekly report on the real estate market in Columbus, Metro using data from Redfin. The statistics are from the four weeks ending May 22, 2022. Metros with more than 50 homes sold during that time period were considered for metro-level rankings for each statistic.