The second week of January saw a substantial increase in mortgage demand, with the total number of applications for mortgages increasing by approximately 10%. This rise in mortgage demand affected both refinancing and new mortgages, which both went up during that same time period. This is largely attributed to declining interest rates, helping to bring the price of mortgages into more affordable levels for potential buyers.
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Both the commercial and residential real estate sectors are facing serious troubles, albeit for almost entirely opposite reasons. The residential real estate market has been significantly hampered due to high housing prices and a lack of available inventory, while commercial real estate is facing a potential crisis from a glut of available properties that no one seems to want to buy. In both cases, however, high interest rates have proved to be an aggravating factor, but fortunately that may be getting better in the near future.
Continue reading “A Mirrored Set of Problems in Commercial, Residential Real Estate”
A significant decline in mortgage interest rates may be spurring newfound interest from prospective homebuyers, according to a consumer survey by Fannie Mae. The survey shows that, for the first time in more than a decade, homeowners are expecting interest rates to decline rather than go up, indicating some optimism for the market. This, combined with an expected increase in the amount of available inventory, may lead more people to begin buying homes again.
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Real estate brokers and lenders have shown growing concern over the general lack of inventory on the market, with RE/MAX CEO Nick Bailey estimating that the US housing market is short between four and five million homes. This overall shortage of housing inventory has been an issue for some time, but the problem has only become more acute as mortgage interest has gone up. Without a significant change, prospective buyers may find themselves in a situation where there are simply not enough houses on the market to purchase.
Continue reading “Available Housing Inventory Reaches New Lows”
Both the commercial and residential real estate sectors are facing serious troubles, albeit for almost entirely opposite reasons. The residential real estate market has been significantly hampered due to high housing prices and a lack of available inventory, while commercial real estate is facing a potential crisis from a glut of available properties that no one seems to want to buy. In both cases, however, high interest rates have proved to be an aggravating factor, but fortunately that may be getting better in the near future.
Continue reading “A Mirrored Set of Problems in Commercial, Residential Real Estate”
A recent decline in mortgage interest rates has led to a sudden spike in refinancing, according to the Mortgage Bankers Association. This dramatic increase in people seeking to refinance their mortgages may signal the end to the Federal Reserve’s efforts to combat inflation through interest rate hikes. However, overall demand for refinancing remains low compared to previous years, indicating that many homeowners are not ready to get excited about the real estate market just yet.
Continue reading “Decline in Interest Rates Leads to Spike in Refinancing”
