The housing sector’s been red-hot for months amid the two-plus years of the COVID-19 pandemic, with soaring prices leading some economists to express their concern about overvalued markets. But with rates rising, the market is finally cooling off, and some buyers say they are pushing off plans to purchase a home by as much as 6 to 12 months.
Meanwhile, mortgage applications have fallen to the lowest level in 22 years, according to recent data from the Mortgage Bankers’ Association. Refinancing and purchases are considerably down. “Does this mean that we’re gonna see a collapse the way we saw 15 years or so ago?” he added. “I would probably say no, in part because incomes are strong, and there’s still a shortage of inventory.”
Both these data points show that “we’re seeing declines in sales on both sides of the market, which I think is attributable to higher interest rates, as well as higher prices,” Neal said.
it's simple. High rates = lower prices, low rates = higher prices. Nothing to be spooked about, it's not magic
Spooking home buyers ? Or making it unaffordable and spooking home sellers / home flippers ?