Interest and mortgage rates are surging. So is inflation. And this will likely get worse with the Russia-Ukraine Conflict. Homebuyer demand across America is plummeting in early 2022 as a result. Pending Home Sales are down. Mortgage Applications are down. And this is just the start of the 2022 HOUSING CRASH for homebuyers and real estate investors.
Data from the National Association of Realtors showed a big monthly decline (6%) in pending home sales in January, indicating that many home buyers and real estate investors have given up on their search.
Moreover – data from the Mortgage Bankers Association shows a nearly 20% decline in Mortgage Purchase Applications over the last three weeks. Skyrocketing mortgage rates mean fewer Americans can afford to buy a home, and that’s starting to show up in the data. Fewer mortgage applications today means fewer purchases in 2-3 months.
Markets like Austin, TX and Phoenix, AZ could have the biggest hit from rising mortgage rates, as homebuyers in these markets are already totally priced out. Metros such as Boise, ID and Las Vegas, NV are also in the crosshairs of a Housing Crash, with homeowner costs already up 40-60% YoY.
Zillow Price Data: https://www.zillow.com/research/data/
NMHC Payment Data: https://www.nmhc.org/research-insight/nmhc-rent-payment-tracker/
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