As the mortgage rate has risen and house prices have fallen, the US housing market has cooled significantly since the pandemic boom era.  October home sale prices are not yet known as the mortgage rate has skyrocketed to over 7% for a few weeks

Demand for new mortgages flattens as rates rise to 7.14% as housing market deteriorates rapidly

US mortgage rates rose to 7.14% this week after falling slightly in late October – the highest rate the country has seen since 2001.

The US housing market has seen dramatic change this year as the Federal Reserve tightened monetary policy in an effort to stifle inflation.

The overall measure of claims, including homeowner refinance, is the weakest since 1997.

Despite rising mortgage rates, homebuyer inquiries rose a slight 1.3% last week according to data released Wednesday by the Mortgage Bankers Association.

Due to the rising cost of fixed mortgage rates, more and more buyers have started looking for cheaper home financing options, such as adjustable rate loans.

Home sales remained down about 33% in October year-over-year, but buyers seem slightly more eager to join the hunt for a new home than they have been over the past few months.

“We are still deeply entrenched in a market that is struggling with high mortgage rates,” said Taylor Marr, deputy chief economist at redfin.com.

As the mortgage rate has risen and house prices have fallen, the US housing market has cooled significantly since the pandemic boom era.  October home sale prices are not yet known as the mortgage rate has skyrocketed to over 7% for a few weeks

As the mortgage rate has risen and house prices have fallen, the US housing market has cooled significantly since the pandemic boom era. October home sale prices are not yet known as the mortgage rate has skyrocketed to over 7% for a few weeks

Home prices have cooled since August and continue to sell for less as the mortgage rate soars to its highest figure in more than two decades

Home prices have cooled since August and continue to sell for less as the mortgage rate soars to its highest figure in more than two decades

The median sale price of a home is $403,556, up 7.5% year-over-year for the month of September, according to the tech-powered real estate brokerage.

The number of homes sold also fell 22.5% to just over half a million.

These numbers tended to decline as the market entered October.

The median US home sale price in the last month of October was $360,861 – a 4% year-over-year increase – and the median mortgage payment was 2,424 $ – up 48% from $1,703 a year ago when the rate was 3.09%.

Sales were also down 50% in pandemic booming cities like Las Vegas, Miami and Phoenix – prices haven’t come down, however.

In fact, prices in metro areas only declined year over year in San Francisco, Oakland, San Jose and outside of California, Lake County, Illinois.

In other major metropolitan areas, the median home listing price in October — different from the sale price — rose year-over-year, but has fallen since September.

In Atlanta, the median listing price was $412,000, up 4.8% from October 2021. But down from $420,000 the previous month.

In Los Angeles, the median listing price was $940,000, an increase of 1.6% from October 2021. The average price was down $9,000 from September.

In Chicago, the median listing price remained constant from September to October and jumped 3.3% year over year.

Median listing prices fall month-over-month - though still broadly up year-over-year - as buyers face significantly inflated mortgage rate

Median listing prices fall month-over-month – though still broadly up year-over-year – as buyers face significantly inflated mortgage rate

Despite declining home sales figures, real estate agents in the center of the country say they have seen an increase in the number of first-time home buyers and other budget-conscious buyers returning to the market to take advantage of their ability to be choosy.

Despite declining home sales figures, real estate agents in the center of the country say they have seen an increase in the number of first-time home buyers and other budget-conscious buyers returning to the market to take advantage of their ability to be choosy.

Despite depressed home sales figures, real estate agents in the center of the country say they have seen an increase in the number of first-time home buyers and other budget-conscious buyers returning to the market to take advantage of their capacity. to be choosy.

They take the opportunity to specify their needs in terms of home features and offer offers below demand as the market adapts to new pricing realities.

This behavior is a reversal of pandemic homebuyers who say they regret buying high-priced homes that don’t match their priorities — including their preferred locations and home quality.

Home prices have jumped 45% during the pandemic and almost 75% of those who bought homes during the outbreak regret their decision.

Despite some signs of market recovery in the last week of October, activity in the home buying sector remains generally down around 30% year-over-year.

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