In its report for November, the National Association of Realtors expected the average 30-year mortgage rate to reach 3.70% by the end of 2022. Now it’s only March 2022, and we’re at 4.5% already. This is moving fast. Last month, I speculated that 4% might be the magic number beyond which the housing market is going to feel it.
It’s not a secret: As mortgage rates rise, more and more buyers are priced out at these sky-high prices, and they step away from the market.
But among buyers who still qualify, rising mortgage rates trigger a mad scramble to buy something “now,” no matter what the price and no questions asked, and they’re waving inspections and are taking huge risks – even NPR aired something like a warning about that yesterday, LOL – to lock in whatever mortgage rates are still available before they rise even further.
Sales of condos plunged by 9.5% for the month and by 4.3% year-over-year to a seasonally adjusted annual rate of 670,000 condos.Mortgage Rates Spike, Home Sales Drop for 7th Month, and Suddenly Here Come the New Listings | Wolf Street