CNBC ^ | 6-14-22 | Diana Olick
Posted on 6/15/2022, 9:54:36 PM by dynachrome
Real estate firms Redfin and Compass are laying off workers, as mortgage rates rise sharply and home sales drop.
In filings with the Securities and Exchange Commission, Compass announced a 10% cut to its workforce, and Redfin announced an 8% cut.
Shares of both companies fell Tuesday. Redfin’s stock touched a new 52-week low.
Mortgage demand has fallen to its lowest level in over two decades. Rates have taken off since the start of this year, rising from 3.29% in early January to 6.28% now, according to Mortgage News Daily. Rates shot up more than half a percentage point in just the past three days, as concerns over inflation hit the bond market.
Rising rates and overheated home prices, which are now up over 20% from a year ago according to various surveys, have crushed affordability. Home sales have been dropping for several straight months, and the fall is expected to worsen....
https://freerepublic.com/focus/f-chat/4071430/posts
~~~~~~
On a side note.....I just checked home sales prices, in my sister's area....one of the fastest growing areas, in TX.....to see if prices were being cut.
ALL of the new homes/new construction listings have had reductions, in the past week.
These are homes that would typically sell the day they were listed, by the builder, on MLS.
Homes are still selling (are under contract), but....prices on ones that haven't sold, are being cut.
Here in East TN homes that would’ve sold in a day or two take a few weeks to go pending. Some that are in the process of purchase will return as “back on market”. And some show “price reduction”. It’s definitely not as hot as three months ago.
My daughter in Wisconsin was looking at buying a house. I told her best to wait with the mortgage rate rising. She said her realtor told her the same thing.