Mortgage demand drops to a 22-year low as higher interest rates and inflation crush homebuyers

cnbc ^ | 7/20/2022 | Diana Olick

[RomanSoldier19]

The pain in the mortgage market is only getting worse as higher interest rates and inflation hammer American consumers.

Mortgage demand fell more than 6% last week compared with the previous week, hitting the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index.

Applications for a mortgage to purchase a home dropped 7% for the week and were 19% lower than the same week in 2021. Buyers have been contending with high prices all year, but with rates almost double what they were in January, they’ve lost considerable purchasing power.

[RomanSoldier19]

[NWFree]

President Retard did that 🤪

[usconservative]

Here in Hellinois, more homes are staying on market far longer, and are implementing multiple price cuts in order to finally get sold. I’m in the market for a new home (cash buyer) and waiting for prices to fall to something more reasonable than they are now. And it’s happening.

[mikelets456]

LOL-—Actually you’re insulting those that are mentally and physically “retarded”.

[Steely Tom]

Three years ago, this headline would have read more like:

"Mortgage demand drops to a 22-year low as Trump inflation crushes homebuyers"

[skimbell]

Hold on.
It’s going to take awhile to get back to something realistic in the real estate market but it is going to happen.
I’m looking to get something smaller, I’m in no hurry and if you watch, you can almost see the whole thing turning toward a cash buyers market.

[DIRTYSECRET]

Just pay cash.

[DIRTYSECRET]

Buy the ships. Pennies on the dollar. House the homeless or turn them into cheap hostels in the port cities.

[usconservative]

For about the last year or so here, it's already a cash buyers market to a very large degree. Sellers have been refusing "contingent on sale" offers, demanding pre-approval letters and giving first priority to cash buyers who can close in under 45 days (usually 30 days.)

Cash buyers have been front of line for a year or longer here, even if their offer is a little less than other competitive bids. Cash has been king. (Two friends in real estate keep me appraised of market conditions and tell me quite honestly that the market's overpriced here and long overdue for a correction, which is coming if not here already based on the price reductions I'm seeing.)

[Billthedrill]

Climate change did that. Also Putin.

[Steely Tom]

Buy the ships. Pennies on the dollar. House the homeless or turn them into cheap hostels in the port cities.

Wrong thread? Close, though.

[SaxxonWoods]

“Mortgage demand fell more than 6% last week compared with the previous week,”

It’s good that mortgage demand has reacted this quickly.

[Opinionated Blowhard]

Increases in mortgage rates also are a direct consequence of inflation. Biden can’t blame Putin for this one. I guess he’ll target “greedy banks.”

[Gnome1949]

The price of houses desperately needs to move back into realityville.

[MotorCityBuck]

Excellent! :)

[RomanSoldier19]

Chinese buyers spent record $6.1B on US real estate in …
https://nypost.com/2022/07/20/chinese-buyers-spent...

[MotorCityBuck]

I keep hearing of these outrageous interest rates, so I figured I'd make a call, and find out for myself...
Rocket Mortgage
30 Fixed 5.25 -5.99%
10% down
PMI depends upon you're credit rating. Most likely to go up again when Fed meets next week. I myself do not find this to be a big deal. However if your looking to buy. Do it soon. My .02 cents This price was quoted to me for a home in the Metro Detroit area

[punknpuss]

I remember the mortgage in the 80s were around 15%. But of course home prices were much lower.

[Diana in Wisconsin]

If you’ve got cash on hand, buy a bus ticket and get the heck OUT of Illinois! Just sayin’! ;)

[RomanSoldier19]