“So all the new permits that are getting [approved], all the new lands that are getting bought now – we’re not going to see anything until 2026-27 at this point,” he said. “So we need five, six years of that market.”
US mortgage rates last week topped 7% for the first time in a month, while home purchase applications fell by the most since mid-February.https://t.co/7XmefloLMk#businessnews #mortgageindustry #mortgagerates #homesales
— Mortgage Professional America Magazine (@MPAMagazineUS) April 12, 2024
Mortgage market realities continue to hinder prospect of new listings
Of course, another factor preventing new listings from hitting the US housing market is the reality that many Americans took advantage of slashed interest rates during the COVID-19 pandemic to lock in a mortgage at extremely low borrowing costs – meaning they have little reason to move or sell their current property and face a much higher rate with a new mortgage.
That’s not to mention home prices continuing to climb across the country. Data from Redfin released last month showed that US home price appreciation had returned to pre-COVID levels, with February seeing prices jump 6.7% compared with the same month in 2023.
Price growth is still significantly lower than at the height of the pandemic, when year-over-year appreciation topped out at 22.9% in March 2022, but up over its June 2023 low of 3.4%.
“There’s a lot of people that are, as they call it, loan-locked, where they have a very low interest rate,” Perez said. “If they sold their house, yeah – they’d make a lot of money. However, go buy another house, it would cost them more because there’s been inflation there.
Source: mpamag.com