US Mortgage Applications Stall As Economic Slowdown Continues

Mortgage applications in the USA have continued to slow, increasing only 0.1% over the week ending May 1st. This follows a steep -3.3%  fall over the previous week and shows further signs of the economic impact Covid-19 is having across the US. Rising unemployment, growing economic uncertainty and limited credit availability has badly hit individuals ability to purchase property.

The number of homes up for sale is also changing rapidly with the higher end of the market being hardest hit – properties listed at a value of $1m+ have dropped by 1% in recent weeks. In contrast, homes priced under $250,000 saw a 24% increase in supply between March 15th and April 20th.

With some of the wealthiest parts of US still on lockdown, it’s unlikely the current trends within the housing sector and beyond will reverse anytime soon. And although President Trump has stated he is “very confident” that a vaccine for Covid-19 will be available by the end of the year, this is by no means a certainty.