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Pending home sales have dipped, and economists expect the market to continue to droop.
Those looking to buy have spent much of 2022 adjusting and readjusting to higher mortgage rates.
The rates on some types of loans have already been coming down.
While the Fed has continued to hike interest rates, the average interest rate on a 30-year fixed rate mortgage has dropped from 7.16% to 6.4%.
“The average days on market has gone from less than a week up to about 89 days,” says broker Amanda Pohlman of Keller Williams Living.
Many potential homebuyers have moved to the sidelines as mortgage rates have more than doubled this year.
The recent firestorm over the British government’s fiscal policies highlighted the vulnerability of some mortgages in the United Kingdom.
Rates are near 7% for a 30-year fixed mortgage, highest in two decades. For buyers who can afford it, shopping is less stressful.
Los Angeles mortgage broker Vivian Gueler says high rates, high home prices and a weak stock market are stopping people from buying homes.
Institutional investors are buying up houses to use as rental properties – and renting them to people who can’t afford to buy a starter home right now.
