The Unrelenting Housing Market: Prices Rise Despite Mortgage Rate Fluctuations.

Despite a dip in mortgage rates, homebuyers are still struggling to find properties to buy due to a record-low inventory of homes for sale. The volume of mortgage applications for purchases increased by 2% on a seasonally adjusted basis for the week ending June 16, but overall purchase activity was down 32% from the same week a year earlier. The limited share of homes on the market has also kept prices elevated this spring, and still-high rates are no help for homebuyers looking for a bargain. However, builders are picking up the demand that isn’t being satiated in the resale market, and new home sales have increased, with construction of both single and multi-family homes increasing by 21.7% in May.