The internet is filled with both facts and speculations about the continued rate hikes implemented by the Fed Reserve Bank. Will they continue to hike and then hold, or will they hike and then cut? And what is the reality of the impact this will have on our economy?
In an article written by Sarah O’Brien for CNBC, she quotes a National Assoc. of Realtors article that states “Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
Inflation pace is the fastest it has been in more than 40 years. Unprecedented, historical, and painful. It is a pain that everyone is feeling, however some more than others.
In a recent CNBC interview, Kansas City Federal Reserve President Esther George noted that the Fed is looking to tighten financial conditions, of which equity markets are a component, in an effort to tamp down price increases running at their fastest pace in more than 40 years.
In a recent article submitted by Diana Olick on CNBC, she reports that weekly mortgage demand from homebuyers tumbled 12%, as higher interest rates take their toll. She makes these key points:
According to multiple industry sources, mortgage rates have reached the highest point in recent months, and may continue to rise. This news may prompt those who have been waiting to refinance or purchase to take action now.
Recent months have seen a reduction in residential mortgage applications. There are varying speculations as to the reasons for this decline in applications:
Many people working in the real estate and mortgage industry, as well as those considering buying or selling real estate, are watching the news and reports on expected changes from the Federal Reserve.
CNBC conducted a survey and share the results in this article written by Steve Liesman for CNBC:
Mortgage loan applications for new home purchases dropped 9 percent in April 2021, and it was the third straight month of reduced application volume.
According to reports from the National Association of Realtors (NAR), millennials represent 37 percent of all homebuyers this past year, and have made up the largest share of homebuyers for 8 consecutive years. Another interesting fact from the NAR is that many of the homes being purchased are considered multigenerational homes that will house adult siblings, adult children, parents, or grandparents.