Article Summary:
- Mortgage applications from home buyers have slid by 12% from a year ago according to a lender survey.
- Steadily climbing mortgage rates, which have been rebounding from the lows of December, can be thanked for driving the queue at the home loan office down.
- Unrelentingly stubborn inflation data is said to be the key pain in the back for potential homebuyers who were betting their dream homes on lower interest rates.
Hot take:
So, if you’re late to the house hunting party, you’ll have to deal with a sobering reality: the bar of home loans is closing early, and the drinks of low mortgage rates have almost dried up. Thanks to persistent inflation that’s worse than a dinner guest who overstays their welcome, playing hide and seek with potential homebuyer’s dreams.
I mean honestly, can anybody catch a break? It seems like we’re all reenacting that episode from “Friends” where Ross keeps yelling “PIVOT!” while trying to fit the sofa up his staircase, except replace the word ‘pivot’ with ‘inflation’, and the ‘sofa’ with ‘housing dreams’.
To the 12% that have dipped out of the home mortgage line, I say: fear not! Sure, the golden age of low interest rates might be fading faster than a pop star’s 15 minutes of fame, but let’s remember that time heals all wounds. Or if you’re not the patient type, there’s always the option to find a really rich uncle. Who knows, you might even get lucky enough to find one who’s into overly generous gifts!
Original article: https://www.inman.com/2024/02/14/demand-for-purchase-mortgages-drops-for-third-week-in-a-row/
