Maxwell Q3 2023 Mortgage Lending Report
Q3 brought continued challenges for home buyers. Despite 11 Fed rate hikes over the past year and a half, interest rates averaged 7.2% in Q3, up 21% year-over-year and 7% quarter-over-quarter. Q3’s average rate represents the highest Maxwell data has recorded within the current market cycle.
Still, the market showed signs of stabilization in Q3, with motivated borrower groups finding creative paths to homeownership despite adversity. Those groups include women, single applicants, first-time home buyers, young (18 to 34-year-old) home buyers, and diverse, multi-racial borrowers. By finding creative ways to achieve homeownership, these borrowers are increasing their shares, showing long term growth in the market.
From this report, you’ll learn:
- The loan amounts and rates borrowers secured in Q3
- Trends in industry loan volume as lenders contended with another quarter of tough market conditions
- The pockets of affordability where home buyers purchased; West Virginia, for example, had the highest share of young and first-time borrowers
- The racial breakdown of borrowers in Q3 compared to past years and quarters—a new component of this report
- Actionable advice from Maxwell experts on how to take advantage of today’s market
“Looking towards 2024, lenders should continue to operate leanly while taking proactive steps to ready their businesses for the return of volume in the not-so-distant future.”