The Housing Market is About to Nosedive

Mortgage rates have been skyrocketing! Mortgage interest rates (30yr fixed) have recently surged to the highest levels seen since early November 2022. This is likely to decrease home buyer demand further as long as rates stay elevated. For example, for a homebuyer looking to purchase a $450,000 home with 5% down payment, it would cost them approximately $267 more per month at 6.94% on 3/1/23 compared to 2/2/23 when 30yr rates were averaging 5.99% (based on principal and interest payments). Also, over the life of the loan (30yrs) that equates to an extra $100k in additional interest payments!

Additionally, the Mortgage Bankers Association (MBA) reported on 3/1/23 that their seasonally adjusted purchase index fell to the lowest levels in 28 years (going back to ~April 1995). This is a measure of the number of mortgage purchase applications in the US.

In today’s video, I take a deep dive into leading indicators of homebuying demand which could give us some indication of where our housing market is headed. Enjoy! Like and subscribe!

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Compilation of Housing Market Forecast videos:
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To give you a quick mortgage interest rates update, according to the Mortgage News Daily the average 30yr fixed rate mortgage is around 6.94% for the current mortgage rates (at the time of filming this video for those with excellent credit).

Comment below: what’s your housing market forecast? Do you think a housing crash will happen or are your housing market predictions that the real estate market and home prices will continue to surge?

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Jason Walter, CPA (lic 103885)
Sacramento real estate agent and native
Realty ONE Group Complete (DRE 01923240)
[email protected]

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Disclaimer:
Jason Walter is not a practicing tax accountant or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video - it is for entertainment purposes only.

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