The country has seen drops in transactions, as high mortgage rates decrease demand. With high interest rate and inflation at 7.7%, the housing sector has been the most affected. The West region in particular dealt with high interest rates and expensive prices. Mortgages rates reached a 20 year high, that is hopefully the highest it will go. There has been a dip in the rates recently that gives hope that the market will soon start to welcome back home buyers.
https://www.usnews.com/news/economy/articles/2022-11-30/pending-homes-fall-4-6-in-october-fifth-month-of-decline
Interesting facts. I wonder how the housing market would affect the economy if it start back soon. and what a crash to the housing market might cause in a situation like this when home buyers are not interested because the high interest rate.
ReplyDeleteinteresting how much the housing market has been effected by the intrest rates and inflation. A 20 year high is a very interesting stat and I am curious to see if the markets will fall as we try and get inflation to drop.
ReplyDeleteThe housing market is finally starting to cool down, the index has declined for 3 straight months, which is the steepest dip in a decade. This decline will surely continue as economists predict 2023 will see an continuous decline specially in the areas which prices increased the most leading up to the economic downturn.
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