I wonder when or if we'll see double digit interest rates like we saw during the Carter years.
‘No sign of a rebound’: Mortgage applications hit 22-year lows, as home buyers pull back As mortgage rates head towards 6%, would-be home buyers continue to stay on the sidelines, putting off purchases and refinances.
Weak demand from buyers is reflected in the Market Composite Index, a measure of mortgage application volume. The index is at its lowest level in 22 years, the Mortgage Bankers Association (MBA) said on Wednesday.
The market index fell 0.8% to 258.1 in the week ending Sept. 2. One year ago, the index stood at 705.6.
The big picture: Rates and home prices show no signs of falling sharply in the near-term, so buyers are choosing to wait. That means the downturn in housing is likely to persist.
Some sellers and builders are so put off by the fall in buyer demand that they’re pivoting to the rental market.
But amidst all this gloominess, things are likely to turn around soon, the MBA said.
“Recent economic data will likely prevent any significant decline in mortgage rates in the near term, but the strong job market depicted in the August data should support housing demand,” Mike Fratantoni, senior vice president and chief economist at the MBA, said in a statement.
In other words, rates aren’t likely to fall significantly, but a better job market translates to higher wages, which means people can afford more. Plus, the inventory of homes is also increasing. That’ll lead to an “eventual increase in purchase activity,” Fratantoni said.
But for now, there’s “no sign of a rebound in purchase applications yet,” he added.................
https://www.marketwatch.com/story/no-sign-of-a-rebound-mortgage-applications-hit-22-year-lows-as-home-buyers-pull-back-11662549800?mod=home-page
