FAYETTEVILLE, Ark. (KNWA/KFTA) — A new report from the Mortgage Bankers Association shows demand for mortgages continues to drop.
It says applications fell nearly 3% last week. This drop comes as interest rates for common 30-year fixed-rate mortgages dropped by 0.10% this week.
Professor Jeff Cooperstein with the University of Arkansas says despite the drop in mortgage applications, the demand for housing in Northwest Arkansas is still very high.
“There is no indication yet, at least in Northwest Arkansas that home prices are going to come down. There are some signs they are flattening a bit, but demand is really strong still,” Cooperstein said.
Despite the pullback in rate increases, mortgage interest rates remain 1% higher than one year ago at this same time.
Maria Lau is the senior vice president for mortgage lending with Arvest Bank.
She says even though interest rates are higher, they’ve been much worse in the past.
Lau says homes in Northwest Arkansas appreciated 11% in 2022, so the longer people wait, the more they miss out.
“Consistently in all areas of Northwest Arkansas, we’re seeing appreciation of about 5% per year,” Law said. “So, if you’re in an apartment or a rental property, you’re not earning that 5% a year. Your landlord is, but you’re not. So don’t be afraid to talk to a lender about buying a house.”
Lau says it’s important to know what is affordable before buying a home. She says potential homebuyers can see a loan officer who will put them in an appropriate program based on their needs and what they can afford.