My girlfriend is a mortgage underwriter and typically has between 25-30 files in her pipeline. For the past couple of months it has slowed to 4-5 files.
I have a good friend in the mortgage business, 30+ years in the industry... we were talking about this coming long before it actually hit... Anyone surprised by the blood bath currently going on hasn’t been paying attention or is too young or new to the industry to know how it works.
The artificially low interest rates of the last decade or more have created an artificial boom.. 5-6% really isn’t all that high of a interest rate historically, but when you have had 3ish rates for well over a decade, if not more, prices have all been predicated on cheap money... So a 300k house for example is a little under $1250ish a month plus taxes, a 6% loan on 300,000 is 1800ish plus taxes...
nearly a 50% payment increase... downward price pressure is coming... if folks bought at the peak and need to get out, a lot of them are going to learn the hard way that what ZILLOW tells them their house is worth ain’t remotely what their house is worth.