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Mortgage demand falls to the lowest level in 22 years, amid rising rates and slowing home sales
Quote:
Total mortgage application volume fell 6.5% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand hit the lowest level in 22 years.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.40% from 5.33%, with points rising to 0.60 from 0.51 (including the origination fee) for loans with a 20% down payment.
Refinance demand, which is most sensitive to weekly rate moves, fell another 6% for the week and was 75% lower than the same week one year ago.
Continuing with the theme of the last year and a half-everything Joe touches turns to crap. Those of us over a certain age remember, faintly, the presidency of Jimmy (peanut farmer) Carter. Record inflation, sky-high interest rates, shortages, record gas prices, gas shortages, lines at the pump, collapsing housing market. These times feel ominously like the Carter years in so many ways.
The biggest...issue was with the Carter years wasn't just the worst recession since the Great Depression, but the lack of leadership and the feeling that this country was failing, that everything was turning to crap. That America and our leadership couldn't do a single thing right and was off-course. As bad as Carter was though, he didn't display the divisiveness of Biden; he didn't deliberately pit Americans against one another trying to tear this country apart. And even he wasn't dumb enough to leave our borders wide open to a tsunami of foreign criminals.
It seems likely that Carter will lose the title of "Worst President in American History" within the next few months. Many are still in shock at how we can go from the best, strongest economy in US history and drive it into the river in just a few short months. In the words of Ted Kennedy, "we'll drive off that bridge when we come to it".
I'm in the Real Estate Biz and I don't think we can blame Biden on the decline in Mortgage applications. The fact is there is A lot less property for sale out there and when something does come up there is plenty of interest and multiple offers.
We recently sold a hole in the wall. I thought my partner had listed it about $100,000 over but boy were we both wrong because it sold for nearly $100,000 over the listing price.
There is A LOT of money out there which does not bode well for the average would be homeowner that is getting priced out and with interest rates rising it means their money will be buying less.
The Housing market will eventually settle itself and we will be okay as long as the Banks do not get cute again with their lending practices by lowering the qualification standards like they did in 06-08.
I vaguely remember Carter but I'd say Biden is worse because at least Carter liked this country and wanted to do what was best for her People. With Biden and his Far Left puppet masters it is like they are trying to teach us a lesson or something. They have no love for America.
I'm in the Real Estate Biz and I don't think we can blame Biden on the decline in Mortgage applications. The fact is there is A lot less property for sale out there and when something does come up there is plenty of interest and multiple offers.
We recently sold a hole in the wall. I thought my partner had listed it about $100,000 over but boy were we both wrong because it sold for nearly $100,000 over the listing price.
There is A LOT of money out there which does not bode well for the average would be homeowner that is getting priced out and with interest rates rising it means their money will be buying less.
The Housing market will eventually settle itself and we will be okay as long as the Banks do not get cute again with their lending practices by lowering the qualification standards like they did in 06-08.
I vaguely remember Carter but I'd say Biden is worse because at least Carter liked this country and wanted to do what was best for her People. With Biden and his Far Left puppet masters it is like they are trying to teach us a lesson or something. They have no love for America.
Well, there are 3 homes for sale in my neighborhood that haven’t budged for over a month. I haven’t seen that since 2008. I personally think the bubble is breaking again.
Shades of the runaway inflation of the 70-80's folks.
We are still just ramping up. The FedReserve/Treasury set this in motion for 2 years and now...setting rates to 0% and flooding the stock market and people with $15 trillion dollars.
Of course it's not their fault. Yellen today says it's because of the war in Ukraine.
Shadowstats uses the old algorithms to calculate inflation. Using the 1980 algorithm inflation today is at 17%. Alternate Inflation Charts
Tell me you don't know what you are talking about without telling me you don't know what you are talking about.
You think maybe inventory has anything to do with the slow-down? Like most things - the housing market will correct itself, just like it has in the past. Don't be so dramatic.
Well, there are 3 homes for sale in my neighborhood that haven’t budged for over a month. I haven’t seen that since 2008. I personally think the bubble is breaking again.
The market is still hot by me. A unit in my condo complex went up for sale...highest price ever for this community and it went pending within hours.
My unit is worth double what I paid in 2019. I could not afford it if I were to buy it today.
Well, there are 3 homes for sale in my neighborhood that haven’t budged for over a month. I haven’t seen that since 2008. I personally think the bubble is breaking again.
Then they are probably outdated or just pieces of crap. Real estate where I am goes in less than a week, often with multiple offers. The only houses sitting are the crappy ones no one wants. My house is currently valued at $600K (according to Zillow so take it for what it is) - almost $200K more than we paid for it.
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Quote:
Originally Posted by Uconn97
Then they are probably outdated or just pieces of crap. Real estate where I am goes in less than a week, often with multiple offers. The only houses sitting are the crappy ones no one wants. My house is currently valued at $600K (according to Zillow so take it for what it is) - almost $200K more than we paid for it.
Well, there are 3 homes for sale in my neighborhood that haven’t budged for over a month. I haven’t seen that since 2008. I personally think the bubble is breaking again.
Well it certainly could be bursting but real estate is always about location location location and there are many more factors to consider when a property languishes on the market.
Prices are crazy right now but there are still plenty of people willing to buy in. I don't think the bubble will burst like it did before but it will certainly deflate.
There will come a reset when the higher interest rates force prices to come down which means less house for the buyers money because more is going towards the interest. The banks just have to hold firm and not make loans to buyers that cannot pay them back. The banks cannot go back to schemes like no money down, stated income, balloon mortgages and other things to lure buyers in. If they can avoid tanking the market with bad loans then we should be ok.
Of course this does not bode well for the first time buyers unless they have really good jobs and this is where Biden comes in. He needs to keep the Feds out of the Housing market but who knows with this 3 Ring Flea circus. Biden is toying with the idea of forgiving student loans so why not help with the mortgages of under privileged minorities like the "new" Americans that are walking across the Border as I type this?
If the Dems really want to tank America, putting their hands on the Housing/Mortgage game would be the final nail in the coffin.
Mortgage demand falls to the lowest level in 22 years, amid rising rates and slowing home sales
Continuing with the theme of the last year and a half-everything Joe touches turns to crap. Those of us over a certain age remember, faintly, the presidency of Jimmy (peanut farmer) Carter. Record inflation, sky-high interest rates, shortages, record gas prices, gas shortages, lines at the pump, collapsing housing market. These times feel ominously like the Carter years in so many ways.
The biggest...issue was with the Carter years wasn't just the worst recession since the Great Depression, but the lack of leadership and the feeling that this country was failing, that everything was turning to crap. That America and our leadership couldn't do a single thing right and was off-course. As bad as Carter was though, he didn't display the divisiveness of Biden; he didn't deliberately pit Americans against one another trying to tear this country apart. And even he wasn't dumb enough to leave our borders wide open to a tsunami of foreign criminals.
It seems likely that Carter will lose the title of "Worst President in American History" within the next few months. Many are still in shock at how we can go from the best, strongest economy in US history and drive it into the river in just a few short months. In the words of Ted Kennedy, "we'll drive off that bridge when we come to it".
The economy goes south because the politicians are leading us. They need to get out of the way and let the free market reign.
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