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Climate Change Has Increasing Impact On Housing Market

Climate Change Has Increasing Impact On Housing Market

Increasingly, insurers have joined those showing concern over the effects that climate change is having, and will have, on the real estate market. As climate change continues to worsen, severe weather will pose a great threat to many areas around the United States, particularly in coastal regions where storms are common, and arid regions where fires are a constant threat. Homebuyers will see the effects of this in increased insurance premiums as more homes come under threat from severe storms.

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Mortgage Demand Hits Lowest Levels In 28 Years

Mortgage Demand Hits Lowest Levels in 28 Years

According to the Mortgage Bankers Association (MBA), total demand for new mortgages dropped by 4.2% in the third week of August, reaching a 28-year low. This occurs at the same time that mortgage interest rates reach a 23-year high, making it harder for many prospective home buyers to purchase homes. This is, in part, the result of aggressive economic policy from the Federal Reserve, which has continued to raise interest rates to combat inflation.

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Commercial Real Estate Sales Dropped By Half In Q2 2023

Commercial Real Estate Sales Dropped by Half in Q2 2023

According to recent data from the Mortgage Bankers Association (MBA), the amount of commercial real estate sales dropped by a little more than half in the second quarter of 2023, compared to the same time last year. While up slightly from the first quarter, this still represents a serious decline in commercial real estate sales, as more companies give up their office space for work-from-home policies. Banks have also become more reluctant to lend money for purchasing offices, hindering those who still want to buy new office space for their companies.

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Fed Raises Interest Rate By Quarter Point To Combat Inflation

Fed Raises Interest Rate by Quarter Point to Combat Inflation

Jerome Powell, Chairman of the Federal Reserve, announced that it would be raising the target federal funds rate by a quarter point, much to the chagrin of many. This increase in the Fed’s interest rates will reverberate throughout the rest of the economy, and is likely to result in further increases in interest rates for mortgages in particular. This is meant to help combat inflation, which remains above target levels.

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Refinancing Demand Increases, But Still Down Year Over Year

Refinancing Demand Increases, But Still Down Year Over Year

Demand for refinancing increased substantially in the second week of July, with applications to refinance a mortgage increasing by 7% compared to the previous week. However, this is still substantially lower than it was at the same time last year, indicating that people are still reluctant to commit to refinancing. This is due in no small part to high interest rates, which make the prospect of refinancing a mortgage far less appealing for many.

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