Plenty of people who are stuck in their current homes, and can’t afford to move, or upgrade.
The current housing market has been a wild ride over the past year. People have been dealing with huge prices, interest rates, and mortgage demand. It’s been a lot to take in, and I have to admit, I didn’t realize mortgage demand was at the level it is until recently. With the market being frozen, anyone who makes money off of real estate transactions is essentially unemployed right now. It makes sense that people don’t want to buy a house with high prices and interest rates that are through the roof. It’s too much for most people to manage.
The other day I spoke with a realtor from the Midwest who told me that everything was fine with the market. When I asked if it was just cash buyers or if people are financing too, she said it was all financed and that they would just refinance when interest rates drop. I had to call her out on that one because I knew that wasn’t true. This is why I saved all my income during the Covid-era. Now I can survive for the next year or two with just a few closings a month as things stabilize and the number of loan officers decreases.
It’s amazing how mortgage rates and mortgage demand are inversely correlated. People don’t want to buy houses at record high prices with a mortgage that’s 8% or more. But, unfortunately, housing prices aren’t falling. There are plenty of people who are stuck in their current homes and can’t afford to move or upgrade.
It’s clear that buyers and sellers need to be aware of the current state of the housing market. Prices and interest rates are still high, which means that mortgage demand is still low. But, hopefully, the market will stabilize soon and people will be able to afford to buy or sell a house. Until then, it’s important for people to be smart with their money and save as much as they can.