flexiblefullpage - default
Currently Reading

Refinance, Purchase Activity Slows as Mortgage Rates Surge

Advertisement
billboard - default
Market Data + Trends

Refinance, Purchase Activity Slows as Mortgage Rates Surge

A sharp slowdown is underway in the housing market, but it could take some time before buyers notice an impact in home price growth


August 15, 2022
Home made of wooden blocks with green and red arrows and percentage in middle
Image: Stock.adobe.com

Refinance activity is at a standstill as borrowing costs continue to surge, and purchase activity is also significantly reduced from just a year ago. As homebuyers hit the brakes midway through 2022, layoffs are increasing in the mortgage industry, but refinancing activity could pick up steam if the market continues to cool, says Bill McBride in the CalculatedRisk Newsletter.

Though still historically low, the NAR reported that inventory was up 2.4% year-over-year in June, while Altos Research and Realtor.com indicate that active inventory is currently up 30% year-over-year. Housing shortages and rate hikes continue to burden prospective buyers across the U.S., but house prices are beginning to decelerate as the Fed’s inflation control methods cool an overheated market

We are seeing a sharp slowdown in the housing market, with more price reductions, more inventory, and fewer sales. It will take some time to see the impact on house price growth, but that is coming too. However, inventory growth has slowed recently, and inventory is key for predicting house prices.

Read more

Related Stories

Market Data + Trends

The Biggest Hurdle for Housing Is Seller Hesitation, Experts Say

Elevated borrowing costs are currently affecting both homebuyers and sellers, with buyers hesitant to spend and sellers unwilling to list and sacrifice the lower rates they've locked in on their current homes

Affordability

A Lack of Listings Is Driving Up Home Prices

Despite fast-rising mortgage rates, home prices continue to increase as hesitant home sellers retreat, limiting the supply of homes for sale

Housing Markets

These Western States Are Seeing Their First Annual Price Declines in Years

Home prices are still rising throughout most of the U.S., but seven Western markets are posting their largest declines in years

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category



Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.