CBS News
Mortgage applications are down. Here’s why buyers may want to act now.
Kevin Kozicki / Getty Images
New survey data shows that mortgage applications are down week-over-week, signaling that mortgage loan demand is declining despite slightly lower mortgage rates. According to the most recent Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, mortgage application volume decreased by 0.7% for the week of March 22, 2024, compared to one week prior.
“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year fixed rate edged lower to 6.93 percent, but that was not enough to stimulate borrower demand,” Joel Kan, MBA’s Vice President and Deputy Chief Economist, stated in the report. “Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market.”
But while many would-be buyers are waiting for better mortgage rates, that may not be the best course of action in today’s market. With mortgage applications down on a weekly basis, it could make more sense to act now. Here’s why
Find out how affordable your mortgage loan could be now.
Mortgage applications are down. Here’s why buyers may want to act now.
There are a few reasons that lower mortgage application volume could signal that this is the time to act. Here are a few to consider:
It’s more likely that your offer will be accepted
The probability of your offer being accepted by the seller often hinges, at least in part, on buyer demand. After all, when there are more buyers in the market, there are typically more offers on desirable properties. But with fewer buyers in the market, sellers may be more likely to accept your offer, as there’s less competition from other buyers.
If you wait for lower mortgage rates, though, you may have to compete with a larger buyer pool, and you could miss out on the opportunity to own your dream home if competition is stiff in your market. If you act now, though, you’ll likely have fewer buyers to compete with, which could increase your chances of landing a contract on a home.
Get pre-approved for a mortgage loan today.
You could have more negotiating power
It can be easier to buy a home when there are fewer buyers in the market, and that’s not just true in terms of getting your offer accepted. Purchasing your home when buyer demand is lower could mean getting a better price on the home.
After all, sellers who receive multiple offers on their homes may be less likely to negotiate. And, in very competitive markets, buyers may need to offer over the asking price to be considered. However, when there are fewer buyers in the market, you may be able to negotiate with the seller on the price of the home.
If you wait, though, home prices could continue to climb.
“With our record low inventory, even when rates drop, there is not going to be enough supply for demand,” says Caryn Prall, chief of growth and industry at Keller Home Loans. “This will keep prices steady or increasing.”
You can still take advantage of lower rates in the future
Buying a home now doesn’t mean you’re locked into today’s high mortgage rates for the life of your loan. You may still be able to capitalize on any potential mortgage rate drops in the future. Here’s how:
- By opting for an adjustable-rate mortgage (ARM): ARM loans start with a fixed-rate period that can last from a couple of years to 10 years. That’s followed by an adjustable-rate period in which the mortgage rate on your loan can change according to the terms of your loan agreement. That means an adjustable-rate loan could allow you to capitalize on mortgage rate drops in the future. It’s important to note, though, that if rates go up, your ARM rate could increase in tandem.
- By refinancing when rates decline: Buying a home now and refinancing your mortgage loan later could allow you to purchase a home while buyer competition is down while taking advantage of lower mortgage rates in the future.
Compare today’s leading mortgage loan options now.
The bottom line
With fewer buyers in the market, it could be a good time to land the home of your dreams at a reasonable price. But if you want to capitalize on the decline in competition from other buyers, you may want to act quickly. Demand could increase again if mortgage rates start to fall. And, buying a home now doesn’t mean you’re stuck with the mortgage rate forever. By opting for an ARM loan or refinancing to a new loan in the future, you could capitalize on today’s more favorable buyer landscape while securing a more affordable rate down the road.
A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
Hollywood actor Keanu Reeves made his professional auto racing debut on Saturday at the famed Indianapolis Motor Speedway.
“The Matrix” star, who qualified 31st out of 35 cars, ran as high as 21st before a single-car crash a little more than halfway through the 45-minute race briefly stopped him in his tracks.
Darron Cummings / AP
The 60-year-old spun into the grass without a collision on the exit of Turn 9 when he had about 21 minutes of racing left. He re-entered the course and continued driving, signaling he was uninjured.
Reeves finished 25th.
The actor is competing at Indianapolis in the Toyota GR Cup, a Toyota spec-racing series and a support series for this weekend’s Indy 8 Hour sports car event. He has a second race on Sunday.
Darron Cummings / AP
He is driving the No. 92 BRZRKR car, which is promoting his graphic novel “The Book of Elsewhere.” He is teammates with Cody Jones from “Dude Perfect.”
Reeves has previous racing experience as a former participant in the Toyota Grand Prix of Long Beach in the celebrity race. Reeves won the event in 2009.
A passenger successfully landed a small plane on Friday after the pilot had a medical emergency, the Federal Aviation Administration said.
The twin-engine Beechcraft King Air 90 was traveling from Henderson Executive Airport in Las Vegas, Nevada to Monterey Regional Airport in California, with a pilot and one other person on board, the FAA said.
The pilot suffered an unspecified medical emergency while flying, the FAA said, forcing the passenger to take the controls and make an emergency landing at Meadows Field Airport in Bakersfield, California.
The Kern Fire Department told CBS News affiliate KBAX that firefighters were called to a report of a medical emergency on the plane. The pilot was reported to be “incapacitated,” the fire department said. Firefighters saw the plane approach and land safely, then “chased” the plane down the runway in emergency vehicles to meet it.
The FAA did not release the passenger or pilot’s identities nor give an update on the pilot’s condition. The pilot was taken to an area hospital by ambulance. The passenger did not report any injuries.
The FAA and the National Transportation Security Board will investigate the incident, the FAA said.
