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Laurie Stewart, CEO of Sound Community Bank in Seattle, says she’s seen a “real uptick in demand for deposits.”
Los Angeles mortgage broker Vivian Gueler says high rates, high home prices and a weak stock market are stopping people from buying homes.
As interest rates climb, people who own homes with low mortgage rates have little incentive to sell, keeping the supply tight.
Prices may be coming down and houses are on the market longer, but many potential buyers have given up.
They’re setting aside more cash to cover delinquencies and taking closer looks at prospective borrowers.
They’re sliding even though the Federal Reserve has been raising interest rates this year.
The median monthly payment on a new mortgage is up more than 40% over last year.
Mortgage rates are rising, but deposit rates will lag, says Laurie Stewart, president of Sound Community Bank in Seattle.
Mortgage rates, for example, probably already have the Fed hikes built in.
Vivian Gueler of Pacific Trust Group said rising rates are slowing the housing market, but it could be months before prices fall.
