Markmywords font
![markmywords font markmywords font](https://i.pinimg.com/originals/7b/08/ed/7b08ed25bb3a13cdbb2d3dde572542f1.jpg)
Gas prices seem to be a roller coaster ride, but we all know that a “comfortable” price has a “2” in front of it. When you have to spend more to eat, there is less for everything else. The index for food away from home rose 7.7 percent, the most since November 1981. All six major grocery store food group indexes increased over the span, with five of the six rising more than 10 percent. The food at home index rose 12.2 percent, the largest 12-month increase since the period ending April 1979. Food inflation in the United States accelerated for a 13th straight month to 10.4 percent in June of 2022, the biggest increase since February of 1981. “Purchase activity declined for both conventional and government loans as the weakening economic outlook, high inflation and persistent affordability challenges are impacting buyer demand,” said Joel Kan, an economist for the Mortgage Bankers Association. Those increased payments crush potential buying power for homebuyers. That rate was 3.11 percent the same week one year ago.Īnother factor of the Fed raising the prime interest rate is that it also pushes credit card and auto loan rates up. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) is 5.82 percent with 0.65 points (including the origination fee) for loans with a 20 percent down payment. Some lenders are closing down all together, while most are cutting staff. Underwriters are calling their MLOs asking if they can do anything for them today. In fact, mortgage demand just hit the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index.Ī number of Mortgage Loan Officers report that lenders are starving for someone to talk to, let alone lend to.
![markmywords font markmywords font](https://d144mzi0q5mijx.cloudfront.net/img/M/A/Mark-My-Words_example_2.jpg)
Now that buyers can’t buy the home they dreamed of at the beginning of this year, sentiment has turned sour. With rates almost double what they were in January 2022, Buyers have lost considerable purchasing power. Mortgage applications to purchase a home were 19 percent lower than the same week in 2021. Interest rates are a large part of the story that makes buyers scarce now. Just a few months ago we had lines waiting outside open houses and multiple offers on the first day, sometimes sight unseen. That last number is of considerable note. While 55 is still positive, it is down from its March number of 80.īuilder sentiment about current sales conditions dropped 12 points to 64, while sales expectations for the next six months fell 11 points to 50 and sentiment about buyer traffic declined 11 points to 37. That marks the largest single-month drop in the survey’s 37-year history with the exception of April 2020 (when COVID lockdowns occurred). Builder overall sentiment dropped 12 points in June to 55, according to a monthly survey from the National Association of Home Builders. The scale runs from 0-100, with anything above 50 being positive. The National Association of Home Builders has an index designed to gauge market conditions. For an accurate estimate about your home value, please contact me directly. And remember, statistics about the USA, Florida or County do not necessarily apply to your neighborhood. It is the sentiment of everyone that is changing our real estate market. Sanity must return, and we are seeing those signs. In a word, I would describe the past 18 months as INSANE. There is no doubt that the real estate market pendulum is swinging back from an all-time seller’s market.
![markmywords font markmywords font](https://image.chosun.com/sitedata/image/201608/22/2016082200026_0.jpg)
Sold chart for 33156 shows far fewer closings these days.