{"id":1515752,"date":"2022-06-14T15:50:44","date_gmt":"2022-06-14T19:50:44","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1515752"},"modified":"2022-06-14T15:50:54","modified_gmt":"2022-06-14T19:50:54","slug":"some-relief-possible-for-home-buyers-as-housing-market-poised-for-most-significant-contraction-since-2006","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/some-relief-possible-for-home-buyers-as-housing-market-poised-for-most-significant-contraction-since-2006\/","title":{"rendered":"\u2018Some Relief\u2019 Possible For Home Buyers As Housing Market Poised For \u2018Most Significant Contraction\u2019 Since 2006"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsome-relief-possible-for-home-buyers-as-housing-market-poised-for-most-significant-contraction-since-2006%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1515752&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"https:\/\/www.dailywire.com\/topic\/housing\">housing market<\/a> is poised for its \u201cmost significant contraction\u201d since 2006 as declining purchase activity makes \u201csome relief\u201d in <a href=\"http:\/\/dailywire.com\/topic\/inflation\">prices<\/a> possible, according to top <a href=\"http:\/\/dailywire.com\/topic\/economy\">economists<\/a> from government-backed mortgage company Freddie Mac.<\/p>\n<p>Sharing <a href=\"https:\/\/twitter.com\/lenkiefer\/status\/1534866789582217217\">data<\/a> from the Mortgage Bankers Association\u2019s Weekly Mortgage Applications Survey, Freddie Mac Deputy Chief Economist Len Kiefer observed that mortgage applications had declined 40% from their seasonally adjusted peak. \u201cThe U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006,\u201d he argued. \u201cMortgage applications are pointing to a large decline over summer.\u201d<\/p>\n<p>Likewise, for luxury homes \u2014 the top 5% of the market \u2014 sales fell 18% from February to April 2022 compared to the same period last year, according to a report from real estate brokerage Redfin obtained by <a href=\"https:\/\/www.wsj.com\/articles\/even-deep-pocketed-buyers-are-starting-to-back-away-from-the-u-s-housing-market-11654806570?mod=hp_featst_pos3\">The Wall Street Journal<\/a>. A <a href=\"https:\/\/www.dailywire.com\/news\/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory\">plummeting stock market<\/a> is likely contributing to hesitation among luxury buyers.<\/p>\n<p>Persistent economic woes \u2014 such as the <a href=\"https:\/\/www.dailywire.com\/news\/housing-prices-continue-to-soar-amid-supply-chain-inventory-crisis\">supply chain bottlenecks<\/a> and <a href=\"https:\/\/www.dailywire.com\/news\/america-is-short-one-million-construction-workers\">labor market shortages<\/a> that are worsening <a href=\"https:\/\/www.dailywire.com\/news\/inflation-reaches-8-6-setting-new-four-decade-high\">overall inflation rates<\/a> \u2014 are also giving consumers pause and directly impacting the housing market.<\/p>\n<p>Kiefer also <a href=\"https:\/\/twitter.com\/lenkiefer\/status\/1536381732995444743\">noted<\/a> that \u201cperiods of rapid increases in interest rates are typically associated with contractions in home sales\u201d due to the rising cost of borrowing funds implied by high interest rates. Indeed, the 30-year fixed-rate mortgage has surged from roughly 3% at the beginning of the year to 5.23% as of June 9, according to <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">data<\/a> from Freddie Mac.<\/p>\n<p>\u201cAfter little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data,\u201d Freddie Mac Chief Economist Sam Khater remarked in a <a href=\"https:\/\/freddiemac.gcs-web.com\/news-releases\/news-release-details\/mortgage-rates-increase-2?_ga=2.259873994.1136838410.1655228411-1899122076.1653489074\">press release<\/a>. \u201cThe housing market is incredibly rate-sensitive, so as mortgage rates increase suddenly, demand again is pulling back. The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home.\u201d<\/p>\n<p>Between quarter two of 2020 and the end of quarter one of 2022, the median home sales price has increased from $322,600 to $428,700 \u2014 a 33% increase in less than two years, according to the U.S. Census Bureau <a href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\">data<\/a>.<\/p>\n<p>Despite the elevated prices and declining purchase activity, most economists do not believe that the United States is presently experiencing a housing bubble, according to a recent <a href=\"https:\/\/www.zillow.com\/research\/zhpe-q2-2022-not-a-bubble-31093\/\">survey<\/a> from Zillow. The 60% of respondents who denied bubble conditions pointed to rationales such as scarce inventory, low credit risk, and other factors divorced from speculative behavior.<\/p>\n<p>Earlier this year, however, analysts from the Federal Reserve Bank of Dallas <a href=\"https:\/\/www.dailywire.com\/news\/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high\">forecasted<\/a> a housing bubble amid \u201cmarket exuberance\u201d that is \u201cunhinged from fundamentals\u201d \u2014 a warning that has not been issued since the housing market crash of 2008.<\/p>\n<p>\u201cAn asset \u2014 in this case, housing \u2014 is in the primary expansionary phase of a bubble when price rises are out of step with market fundamentals,\u201d they wrote. \u201cRapid real house-price appreciation, such as that observed now, does not in itself signal a bubble\u2026 But real house prices can diverge from market fundamentals when there is widespread belief that today\u2019s robust price increases will continue. If many buyers share this belief, purchases arising from a \u2018fear of missing out\u2019 can drive up prices and heighten expectations of strong house-price gains.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The housing market is poised for its \u201cmost significant contraction\u201d since 2006 as declining purchase activity makes \u201csome relief\u201d in prices possible, according to top economists from government-backed mortgage company Freddie Mac. Sharing data from the Mortgage Bankers Association\u2019s Weekly Mortgage Applications Survey, Freddie Mac Deputy Chief Economist Len Kiefer observed that mortgage applications had &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1515868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1515752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1515752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1515752"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1515752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1515868"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1515752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1515752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1515752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}