According to this report by CNBC, the Mortgage Bankers Association index found that the demand for mortgages dropped to its lowest point since the year 2000, driving the competition of home sales down.
The future of home buying feels uncertain, with many buyers taking the “wait it out” mentality until the mortgage rates drop. According to Freddie Mac, the charts below can account for some of the shock factor; the rate on a 30-year mortgage today is twice what it was this time last year.
With inflation rising and wages staying stagnant, many buyers are forced to put a pause on their home search until the market feels more affordable. As long as inflation rises, the number of qualified or willing buyers will decrease, an issue that can only be mitigated by a rise in inventory or price reductions.
While those price reductions may be enough to get more buyers in the game, they don’t provide many favors for sellers who want to sell their property for their desired price and terms.
Now, for the first time, buyers and their agents have access to a platform that discloses exactly what it takes to make a winning offer. This transparency allows buyers to become aware of where they stand in the process and to react immediately as opposed to waiting to find out if their offer has been accepted.
For buyers who are eager to purchase their next home, Final Offer might be exactly what they need to make an offer with certainty, despite the changes in the current market.