Number of the Day Shows Record Mortgage Size
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That was the average size of the mortgage loans applied for last week—a record high for the 30 years the Mortgage Bankers Association has been collecting data.
The increasing loan size reflects a dichotomy in the housing market. Demand for more modest homes is slowing as housing prices rise, fueled by record-low mortgage rates and a low inventory of homes for sale in the COVID-19 pandemic.
“There are signs that demand is waning at the entry-level portion of the market because of supply and affordability hurdles, as well as the adverse economic impact the pandemic is having on hourly workers and low-and moderate-income households,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, in a statement Wednesday. “As a result, the lower price tiers are seeing slower growth, which is contributing to the rising trend in average loan balances.”