![]() “The long-term outlook is still quite strong,” Dr. Mortgage applications were down 24 percent, and pending sales fell 13 percent from the same time a year earlier, the largest drop since May 2020, according to Redfin. The same Redfin report found that fewer people were searching Google for homes and asking to tour properties. In the four-week period ending June 26, the median asking price for newly listed homes was down 1.5 percent from its all-time high this spring, and, on average, 6.5 percent of listings dropped their prices each week, according to a Redfin report.ĭemand is down, too. ![]() Prices are unlikely to take a nosedive, but cracks are showing. “That’s thrown a monkey wrench, another calculation, into the mix.” “I don’t think anybody on the planet expected them to double in six months,” Mr. ![]() Many industry experts have had to recalibrate their predictions for the months ahead. ![]() “If we get more inflation numbers like we did a couple of weeks ago, there is no telling how high mortgage rates could go.”īuyers weren’t the only ones caught off-guard by the rapid change. “When inflation peaks, mortgage rates will have peaked, and that’s really the key ingredient,” said Greg McBride, the chief financial analyst at. “That’s a one-two punch that a lot of buyers can’t overcome,” said Rick Sharga, an executive vice president of market intelligence at ATTOM, a real estate data company.Įxperts aren’t anticipating that rates will return to the elevated levels of the 1970s and 1980s - they peaked at 18.4 percent in 1981 - but until inflation recedes, they will keep rising. Many buyers simply cannot absorb that kind of increase, particularly when it’s combined with current home prices, which rose more than 20 percent from May 2021 to May 2022, according to Zillow. ![]()
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