Home loan amounts for purchases rising as mortgage applications fall

Tarek El Moussa, star of HGTV’s ‘Flip or Flop,’ says the increase in luxury home sales is due to ‘a huge transfer of equity.’

The average loan amount for buying a home in the U.S. continued to climb this week while loan applications across the board continued to drop, as low inventory in the market pushes the cost of purchasing to greater heights.

“Swift home-price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher,” Joel Kan, the Mortgage Brokers Association Associate vice president of Economic and Industry Forecasting, said in the MBS’ latest report on its weekly mortgage survey.

The average loan amount for a purchase hit $405,300 this week, up from $405,000 last week as the numbers continue to climb.

MORTGAGE APPLICATIONS SKID TO LOWEST IN OVER A YEAR

The latest data show that mortgage application numbers continued to decline, after dropping the…

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