Rates jumped over the last 2 weeks, before the Russian invasion we were getting to 4.50 % on the 30 year fixed conventional loans ( non jumbo). From the low 3’s to 4.50 % In two weeks. After the invasion rates have dropped again. A couple of more invasions and we can drop into the low 3’s again. Sales of existing homes have dropped for the third consecutive month. But I’m thinking that’s an inventory issue and not a rate issue. Builders continue to build as fast as they can. Buyers continue being stupid. My Jew office mate bought a 2bd 2 ba house in Lakewood (modest neighborhood) for $ 750,000 in October 2021, he sold it In January 2022 for $950,000 after some minor remodeling. Who are the buyers? Some dumfuks who overpaid in 2005 and lost that house. Now they repeated the gaffe in 2022.
Lenders mortgage volume is expected to reduce by 40% this year . Layoffs have already started. Don’t expect a drop in prices just yet tho. but It’s coming.
Home prices continue their climb unabated. and now mortgage rates have started dropping as the spring home buying season kicks in. Rents are up too, the rent is just too damn high! the latest data released indicates another 20% increase in prices in 2022. Did I mention I went in a buying spree of Southern California real estate in 2010-2015? Short sales baby. Real estate the great creator and destroyer of wealth. Foreclosures are at all time lows but delinquencies are climbing . With inflation roaring all we need is a good round of lay offs to kick off the downturn. as with all downturns, credit will tighten up. Save your cash. Buy if you don’t own anything, otherwise chill and look for distressed properties.