Mortgage demand hits lowest level in 22 years. 2022-06-09
Gulf Coast Real Estate Update
June 9th 2022
Mortgage demand hits lowest level in 22 years
Source:The Mortgage Bankers Association’s (MBA)
Refinance demand, which is most sensitive to weekly rate moves, fell another 6% for the week and was 75% lower than the same week one year ago. The vast majority of mortgage holders now have rates considerably lower than the current rate. Applications for a mortgage to purchase a home fell 7% for the week and were 21% lower than the same week one year ago.
Cash continues to be King in our Pinellas Coastal Markets. Over 54% of all residential deals closed in the last 30 days have been cash (No Mortgage) 68% of Gulf Front Condos sold for cash.
Mortgage Rates Increase
After little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data. The housing market is incredibly rate-sensitive, so as mortgage rates increase suddenly, demand again is pulling back. The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home.
