CNBC is reporting that mortgage applications to buy a house are up 23% from last year, and at the highest level since 2022 - indicating that homebuyer demand in the housing market is rising slightly. Will homebuyer demand continue to go up in the fall as the Fed cut rates? And will we see home prices eventually go up due to these rate cuts? Access the data for your area at: https://www.reventure.app
The Mortgage Application Index is updated weekly by the Mortgage Banker's association, and just hit a reading of 169 in the first week of September. This is the highest level in 3 years, and could show signs of a thawing housing market. However - overall demand levels are still low, and any increase in demand is likely some buyers finally jumping on lower prices.
Many people are thinking the Fed Rate Cuts coming later this month will spur homebuyer demand, with the Fed forecast to cut interest rates by 25 basis points at their September 17th meeting. Mortgage rates have already dropped a bit, down to 6.29%, anticipating this rate cut. Could they drop further now that the labor market is cooling?
The BLS just revised down their job growth figures from March 2024-25 by 911,000. This means a weaker labor market is at play, and could be putting downward pressure on buyer demand (despite the recent increase). Will people decide to buy a house if they fear losing their job, or anticipate weaker wage increases in the future? --- REVENTURE APP: https://www.reventure.app
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