Mortgage Application Are Down 39%
So there is certainly no boom but there is also no bust going on in the real estate market. While mortgage applications for new purchases are down 39% compared to last year, they are up compared to recent weeks.
Rates dipped to 6.2% which is the lowest since 9/22 which has caused an uptick in both purchase and refi applications from earlier in January.
The most recent forecast is that sales will be down to the lowest levels in over 10 years mostly because rates and home prices have created an environment where only those who NEED to move are moving.
No one is going to choose to move across town and give up a 3.25% rate, deal with all the costs and headaches of moving, and then get into a 6.25% rate unless there is a compelling reason.
What does it mean? It means there are fewer buyers and sellers and things are going to be very different but not bad.
Sellers are price-dropping and paying closing costs for the buyers but there is no drastic value drops and we are NOT in a buyer’s market.