BREAKING NEWS: Mortgage Demand At Its Lowest In 20 Years

Breaking news for you - this week, mortgage demand is the lowest it’s been in the last 20 years.

Sellers don’t panic. I believe buyers are staying on the sidelines due to high mortgage rates and a gloomier economic outlook. The experts from Mortgage Bankers Association agree and say mortgage applications are down 18% from last year.

Now with mortgage rates going up, Requests for refinancing have gone down- this week by 5% from the previous week and 82% from a year ago, to the lowest level since November 2000. So not a lot of incentive to refinance right now.

If you’re looking to buy, with a good credit score, fixed-rate mortgage rates are up on average from 5.45% to 5.47%. For jumbo fixed-rate mortgages, rates are also up to 5.09% to 5.14%, Those numbers shift so check with your lender for the most current rates today.

We know the market has cooled.. Home prices are down about 5% in the past month. More homes have come on the market, and listings under contract have slowed dramatically too.

So what does that mean for you are a seller? If you are on the market right now..and at the top of the price range.. Now.. I”m going to tell you what your agent, may not have the stomach to…..You should consider a price reduction. The market is shifting and if you do a small price reduction… you are still going to be at the top of the market… and follow the market down. The only way to capitalize on a downward market is to get below the top of the market. It doesn’t have to be by a lot, but you have to have what is perceived as a reasonable price for your home. That means you can’t point to a neighbor who sold 2 months ago- and say but they got…. It’s not that market anymore. You have to create value, and that’s the way to do it. So when your agent says its time for a price reduction understand two things - 1: The market is shifting and your agent can’t control that. 2: If you listed your home in the past two months and you aren’t getting any traffic… and your agent has created beautiful marketing materials and put out ads to sell your home and held Open Houses, and broker opens and done all the things they should be to get your home sold and it’s still not selling… it’s time to rip the bandaid off and make a substantial reduction. Your home will sell when the price matches the market, for location, and condition. Right now buyers aren’t willing to overpay.

Are you looking to buy a home? Search all homes for sale: https://www.conniecollagroup.com/

Are you curious to know what your home is worth? Find out the value of your home: https://www.conniecollagroup.com/evaluation