By Douglas Katz – 07/22/2022
Per Freddie Mac:
The housing market remains sluggish as mortgage rates inch up for a second consecutive week. Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.
Other Key Points and Highlights:
- As I wrote in an earlier article, housing starts have also decreases showing builders are having many of the same concerns. This will likely inhibit more supply hitting the market.
- Buyers are cancelling deals at a much higher rate than the last few years. This represents a major shift in buyer psychology and may be the shape of things to come for the next months and maybe years.
- As I have written, this trend should be looked at as the reality for the foreseeable future, especially with inflation and other market indicators creating more concern.
- There may be minor downward moves but these would be the typical in any market. While a buyer may get lucky and time things right, trying to do so deliberately will likely not be an option.
- Anecdotally, my realtor friends are telling me that longer market times, price drops and other indicators of a market shift are becoming more and more part of daily like.