Bluebid Buzz: July 6
The Bluebid Buzz is a regular summary of housing market news and data driving our decision-making at Bluebid Homes.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.
Here's the buzz for the week of July 6, 2023…
Mortgage rates rose slightly this week, affordability has worsened in most markets, mortgage demand took a step back, and inventory remains depleted.
CNBC says mortgage demand to purchase a home, which had been rising for three straight weeks, dropped 5% for the week. The average 30-year fixed-rate mortgage rose from 6.75% to 6.85% over the same period.
Realtor.com believes higher rates have led to an even larger problem: a worsening shortage of homes for sale. Homeowners have been reluctant to trade up or down, or relocate and give up their record-low mortgage rates.
Business Insider writes housing affordability worsened in 98% of US counties last quarter, per data from the analytics firm ATTOM.
HousingWire shares that in some markets there are now 2-3x more homes listed on Airbnb than for sale, and some believe the situation has robbed the housing market of inventory.
With housing inventory hard to come by, USA Today digs into the baby boomer generation's propensity to age in place. They note 38% of American homeowners age 65+ have lived in their home for more than 30 years, and another 39% have lived in their current home for more than a decade.
While the market has wreaked havoc on buyers, it hasn't exactly been easy on sellers. Rising rates depress buyers' purchasing power, and the high prices of a year ago are far from guaranteed. Homeowners who are on the fence about selling can explore doing so privately - and without the pressure of published days on market - with Bluebid Homes.
Have a great week.