Rate hikes are tightening housing affordability again
Why it matters: Higher mortgage rates cut buyer purchasing power and weaken demand, which pushes on pricing conversations, buyer conversion and transaction volume.
Mortgage Rates · yesterdayNo new stories to report today (Sat, Oct 10). This is the latest briefing with stories, from Fri, Oct 9.
Why it matters: Higher mortgage rates cut buyer purchasing power and weaken demand, which pushes on pricing conversations, buyer conversion and transaction volume.
Mortgage Rates · yesterdayWhy it matters: Buyers expecting lower prices while analysts reject a 2008-style crash means agents will face sharper pushback on list prices and need solid local comps to hold a pricing position.
Housing Crash · last 3 daysThe new item is the crash-or-correction debate, with buyers hoping for lower prices while analysts say today's market differs from 2008. Meanwhile financing keeps tightening: 30-year conforming rates averaged 7.63%, up 31 bps in 2 weeks.
Analysts argue the current housing market is different from the one that led to the 2008 housing crash, so a collapse is not the base case.
Buyers, including the majority of everyday Aussies in one source, want home prices to fall even further as affordability pressure builds.
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