– After a strong start in January, applications for purchase loans are dropping.
– Mortgage rates have stabilized and are not plummeting from 2023 highs anymore.
– Experts speculate many potential homeowners are hesitant due to the unstable rates.
– The housing market is still far from balanced with the supply-demand equation heavily skewed.
– Housing prices are still hovering at all-time highs, making affordability a big concern.
Mortgage Market Plays Glimmering Game of Hide and Seek
Applications, Rates, and a Real Estate Roller Coaster Ride
Applications for home purchase loans, after behaving like charging bulls early in the year, have apparently decided to take a nap. After galloping in the first three weeks of the new-year, they have begun to tail off. And to add to the drama, the villain of the piece, mortgage rates, have paused in their frightful freefall from their 2023 highs. Yes, they took a breather, maybe caught their breath, and now refuse to dive any further. Talk about temperamental!
The Housing Market: A Lean Mean Supply Machine
On the battleground of real estate, the supply-demand equation seems to favor one side more than the other. The hoards of potential homeowners find themselves in an epic staring competition with the limited properties available. The term ‘fierce competition’ doesn’t quite cover it. It’s more like ‘Game of Thrones,’ but with house keys instead of swords.
Affordability: A Cruel, Cruel Word
Buckle up folks, because hold onto your hats – house prices still hover above us like a threatening rain cloud, no signs of letting up. The ‘affordable housing’ graphic is starting to look like a unicorn, something we’d all love to see, but doubt its existence.
My Hot Take on the Subject
The real estate market is currently behaving like a bratty child, hiccuping and throwing tantrums left, right, and center. It’s challenging to predict how long this ‘dance of the sulky rates’ might continue or when the ‘house pricing storm’ will pass. It’s worth noting that dipping your toes in these shark-infested housing market waters must be a calculated risk. If you’re planning to dive in hoping for an undersea treasure trove, you might want to rethink your strategy because, my dear friend, these waters are murky and full of surprises. And for those who think they can tame the beast that is the current housing market, I tip my hat to you — you have more courage than a red cape-wielding matador in a bullfight.
Original article: https://www.inman.com/2024/02/07/homebuyer-purchase-loan-demand-falls-again-as-mortgage-rates-firm/
