[Music] Interest in mortgages continues to fall Among borrowers and at the same time Mortgage rates are rising and inflation Remains stubbornly High The Mortgage Bankers association's mortgage Application survey shows that Applications fell almost six percent Last week that marks the third Consecutive weekly drop and a 28-year Low for the second straight week Joining us now is Daryl Fairweather she Is a chief Economist for the real estate Company Redfin Daryl great to have you With us this dip in applications comes As the 30-year fixed mortgage rate what The average Rose to its highest level Since November of last year so is Inflation alone driving this or are There some other factors at Play What's driving these high mortgage rates And the lack of demand is the fact that Mortgage rates are so much higher now Than they were just a year ago now That's caused by inflation and the FED Having to raise the federal funds rate In order to fight that inflation Unfortunately the housing market is just Collateral damage Well so the Federal Reserve meantime is Holding its next meeting less than two Weeks from today how am I yet another Rate hike impact mortgages It's not so much what happens at any
Individual meeting it's the signals that We see from the market like inflation Being stickier then we're hoping or Unemployment being low which is good you Know for the people who don't have jobs But it's bad when it comes to fighting Inflation so the more signals we get Like that from the economy the higher Mortgage rates are going to go and the Less affordable it is to borrow to buy a Home and then if we rewind the clock Just by a few years I mean the housing Market was on fire demand was so high Because mortgage rates were so Relatively low so now that we're seeing Things change what does everything You've just spelled out mean for the Housing market in the months ahead how Would you expect for it to perform this Year It is so unfair that during the pandemic Some people were able to buy second Homes investment properties with record Low mortgage rates but now that we're Coming out of the pandemic and more People are getting back to work these Mortgage rates are so high but it's Really just a hangover from this little Mini bubble we saw last year where People were dashing to take advantage of These low mortgage rates now home prices Are actually coming down we log the First year over year decline in home Prices in a decade so it's a really
Remarkable housing market it's it's Tough out there if you're a seller a lot Of homeowners are just backing off the Market entirely instead of selling new Listings are down considerably the one Silver lining is that if you manage to Be able to afford a home if you can get That mortgage you're going to face a lot Less competition so that's that's the One good thing a bit of good news Daryl Fair weather Daryl thank you so much Thank you Daryl
