Today’s Homeowners Can’t Afford to Sell
The housing bears have ratcheted up their rhetoric lately, calling for an impeding crash. It’s not a crazy notion with home prices clearly unaffordable and… Read More »Today’s Homeowners Can’t Afford to Sell
Housing Market
Commentary on the latest housing market news, with a focus on home prices, buying and selling conditions, and if another housing crash is right around the corner.
Hint: It probably isn’t for a while, at least with regard to home prices. Though you could argue there’s a major affordability crisis at the moment.
In short, a lack of for-sale supply continues to plague the housing market.
This absence of inventory has resulted in record high home prices, despite a surge in mortgage rates from the 2-3% range to 7% and higher.
And it’s probably hurting first-time home buyers the most, whether it’s an affordability issue or the inability to find a property.
At the same time, home sellers remain in a good spot due to this lack of supply and still relatively strong demand.
The problem for them might be finding a suitable replacement property.
Mortgage Rates vs. Home Prices: Is There Really an Inverse Relationship?
Mortgage Q&A: “Mortgage rates vs. home prices.” Today, we’ll look at the impact of home prices and mortgage rates on your decision to buy a… Read More »Mortgage Rates vs. Home Prices: Is There Really an Inverse Relationship?
Can Free and Clear Homeowners Save the Housing Market?
The housing market is in trouble. The latest blow being mortgage rates returning to 7%. But the ongoing issue has been a severe lack of… Read More »Can Free and Clear Homeowners Save the Housing Market?
Why the “It’s the 2008 Housing Crisis All Over Again” Argument Falls Short
There’s been a lot of buzz lately regarding another 2008 housing crisis unfolding in 2023. I’m hearing the phrases underwater mortgage and foreclosure again after… Read More »Why the “It’s the 2008 Housing Crisis All Over Again” Argument Falls Short
How the Fed Could Benefit from Lower Mortgage Rates
The Fed has played a major role in consumer mortgage rates over the past decade and change. Back in 2008, they began purchasing hundreds of… Read More »How the Fed Could Benefit from Lower Mortgage Rates
A 1% Decrease in Mortgage Rates Is Worth an 11% Drop in Home Prices
A recent podcast from First American economists discussed the current state of the housing market. The subject was the rebalancing of the housing market, which… Read More »A 1% Decrease in Mortgage Rates Is Worth an 11% Drop in Home Prices
What Are Seller Concessions?
Now that the housing market is turning in favor of home buyers, the phrase “seller concessions” might become a lot more common. Over the past… Read More »What Are Seller Concessions?
2023 Mortgage and Real Estate Predictions
It’s nearly 2023, which means it’s time for a fresh batch of mortgage and real estate predictions for the new year. My assumption is everyone… Read More »2023 Mortgage and Real Estate Predictions
Home Prices Need to Fall 25%, But They Probably Won’t
A new report from Zillow revealed that home prices need to come down by about 25% to become affordable again. But chances are they won’t,… Read More »Home Prices Need to Fall 25%, But They Probably Won’t
The Case for Sub-5% Mortgage Rates by 2023
While mortgage rates have a good chance of getting worse before they get better, hope might be on the horizon. The long and the short… Read More »The Case for Sub-5% Mortgage Rates by 2023