Homebuyer demand has crashed to its lowest level in almost a year as mortgage applications hover near a 3-decade low – DIGIWIZ CENTRAL

Homebuyer demand has crashed to its lowest level in almost a year as mortgage applications hover near a 3-decade low

Ocala, Florida

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The unaffordable housing market is keeping prospective buyers on the sidelines.
Mortgage-purchase applications are hovering near their lowest mark in 30 years
Redfin’s Homebuyer Demand Index dropped to its lowest level in nearly a year, down 5% since last October.

The unaffordable housing market has weighed on homebuyer demand across the US, according to a Thursday Redfin report.

Many house hunters and current owners have stayed sidelined with mortgage rates near two-decade highs and the median monthly mortgage payment approaching $3,000.

Mortgage-purchase applications ticked higher from a week earlier, but they are still near the lowest mark in almost 30 years, Redfin said, citing data from the Mortgage Bankers Association.

Plus, Redfin’s Homebuyer Demand Index, a gauge that tracks tour requests and other early-stage demand signals, has dropped 5% compared to last October, seasonally adjusted, hovering at its lowest level in nearly a year.

Weak homebuyer demand comes amid the Federal Reserve’s historic rate hiking campaign. Rates for the typical 30-year fixed mortgage are still above 7%. And due to tight housing inventory, high rates haven’t coincided with the typical drop in home prices.

Redfin reported that the median asking price for a home hit $388,223 in the four weeks ending October 8, a 5.2% year-over-year jump and the steepest increase in a year.

All told, the ability for a family to own a home is at a decade-low, and every state in the US has seen affordability decline over the last several years, Moody’s data shows.

The supply side also faces headwinds. The total number of homes for sale in the four weeks through October 8 is down 14% compared to last year, and the four-week rolling average of newly listed homes for sale is down 4% compared to 2022, according to Redfin. 

Read the original article on Business Insider
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