Last week, the real estate market saw a decrease in active inventory and new listing data, with the latter reaching an all-time low in 2023. However, purchase application data increased by 8%, indicating that homebuyers are moving quickly into escrow. The seasonal housing inventory has hit a new low, breaking records for how late it is in the year. Mortgage rate volatility has made some home sellers hesitant to list their homes, as they may need to buy another one at a higher rate. The Fed welcomes tighter credit, as it signals their predicted recession may finally occur.
High mortgage rates continue to encourage homeowners to stay put, with one-third citing this as their reason for not selling. Two-thirds of recent borrowers plan to seek new financing in the form of home equity loans, reverse mortgages, refinancing, or investment property loans. Saving money is the top concern for both homeowners and renters when financing a mortgage.
Different generations have different priorities when it comes to home financing. Baby Boomers want low interest rates, while younger generations focus more on loan terms and product options. Research indicates that while digital mortgage offerings are more profitable for lenders by having less human expenses, they typically elect not to pass any of those savings onto consumers. First time home buyers, in particular, prefer a human connection.
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