Bite-Sized Breakdown: Homebuyers ‘Loan’ely Amidst Firming Mortgage Rates
Key Takeaways
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Mortgage rates are finally catching up with homebuyer demand, leaving quite a few potential buyers in the dust.
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An MBA survey proudly showcases that applications for home purchase loans have taken a nose dive, tumbling down by a seasonally adjusted 11% just last week. Bam!
Hot Take
Alright folks, here’s the ‘house’ of cards situation we’re in; Homebuyers are feeling a bit ‘loan’ely (pun very much intended) as they are caught in a tight spot thanks to our friend, the firming mortgage rates. This ‘firm’ acquaintance of ours doesn’t seem too keen on easing up and resultantly, demand is feeling the squeeze.
The MBA survey served us the raw truth, appetizer-style. Applications for purchase loans went down faster than my phone battery does on a slow, lazy Sunday (a full 11% decrease, or as we around here like to call it, tweets-per-minute). Now that’s what you call a tumble!
In case you didn’t pick up on it, I’m dropping hints that the real estate world might be entering into a very complex game of musical chairs. But instead of chairs, imagine sprawling suburban houses and city condos. And instead of music stopping, picture interest rates rising! Oh, what a fun game!
As our dear homebuyers navigate through this storm, let’s grab a popcorn and watch the drama unfold. Either they find the perfect house at the perfect rate, or they’ll have to sit out a round in the home buying game. Either way, things are about to get interesting! Get ready folks, because in this property market, it’s every man for his own mortgage!
Original article: https://www.inman.com/2024/01/31/applications-for-purchase-loans-sags-for-first-time-in-2024/
