All around the country prices rise for everything. Inflation is hitting more than just the wallets of the average American, it’s also hitting the new home buyer as well. No new house can be built in a timely manner with the still looming supply shortages, and the demand for a home is still rising., This has caused the prices for homes already built to be astronomically high. So high that people are completely avoiding buying a new house.
Total mortgage applications decreased 13.1% last week to the lowest level since December 2019. People are even afraid to refinance their homes right now because they are not sure if they will have to pay more in the long run. Higher mortgage rates with high prices and limited quantity pushed applications to purchase a home down 10% weekly and 6% lower than one year ago. Rising mortgage rates will pose a challenge for some buyers, likely leading to less demand. Lazzara predicts that price growth will soon slow in reaction to higher rates.
Investor’s Edge with Gary Kaltbaum can be heard on weekdays on MoneyTalk 1010. Gary Kaltbaum is a registered investment advisor with more than 30 years of experience in the markets. He is the owner and President of Kaltbaum Capital Management, a financial investment advisory firm headquartered in Orlando, Florida. He is a Fox News Channel Business Contributor regularly appearing on Fox News Channel and the Fox Business Network. In addition, Gary is the author of the book “The Investors Edge” and the host of a nationally syndicated radio show with the same title, “Investors Edge,” broadcast on numerous stations across the U.S. The show is also available on-demand and airs live 6-7 pm EST Monday-Friday. You can hear past shows online at garykaltbaum.com.
More Money Talk 1010 Highlights From This Week