Recently, the nightly news and general newspapers business sections blurted out the news that mortgage applications are down -- signaling a possible slowdown to the economy and less-than-positive feelings about housing. Worse, that the Trump Economy was scaring new homebuyers away.
While the first part was correct -- yes mortgage applications are slightly down -- they never peeled back the book cover and asked WHY? Which led to the assessment that housing is going to stagnate. Blame it on media that no longer asks hard questions. But then I'm a recovering journalist with strong feelings about the state of the media today. But that's another story for another day ....
Here is the real story.
Mortgage refinance applications are WAY down. I mean DOWN. Somewhat because rates have inched up, but mostly because anyone who was going to refinance has already done so.
The more important news that was totally missed in most of the media coverage of the announcement is that applications for home purchases are WAY UP! Buyers are applying for mortgages for existing resale homes and new builds at a fast pace. Accordingly, builders are building. This is happening across the U.S.A.
And after nearly a decade of little development during the recession of some years ago, Southwest Florida is a hotbed of new development as well. As a lender friend of mine told me last week, his office hit a record for mortgage applications for home purchases in a single month. And he's been in the business for more than 30 years.
So the health of the housing market is strong! Here in SW Florida we have a little more inventory than the rest of the nation. Prices are stable in much of the Naples area, higher on Marco Island, and stable to a little lower in Bonita Springs and Estero (creating a buyers market there).
Even our typically slow summer season has seen steady interest from buyers. Which shows this market is becoming a little more of a year-round market for real estate, and not just busy from January through April!
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