Mortgage Applications Spike as Rates Fall
Home buyers waiting on the sidelines for mortgage rates to drop got their wish in early January, rushing into the market. Mortgage purchase applications spiked 25% in the week ending January 13, according to the Mortgage Bankers Association, as interest rates fell to their lowest level in four months. But compared to the same period a year ago, applications were still off sharply. Tim Rood, SitusAMC Head of Industry Relations, recently spoke with Scripps News Service about what home buyers and sellers should consider in the year ahead
“Going into 2023, (the market) is really going to follow the path of interest rates,” Rood said. “If interest rates start eking more towards 7% or go higher than 7%, you’re going to see more properties on the market languishing, not selling, which will create downward pressure on home prices.” Alternately, if rates dip to 5.5% to 6%, activity will rise, inventories decline, and we’ll see more upward pressure on housing prices, he said.
Tim also offered some strategies for both buyers and sellers to navigate the volatile housing market. Listen to the interview to hear more.