Signs of Cooling Housing Market

Original air date: June 18, 2022

GROWING WORRIES ABOUT THE ECONOMY ARE HITTING STOCKS AND THE HOUSING MARKET HARD.

IT'S *NOT QUITE A BUYER'S MARKET YET..

WITH DEMAND FOR HOMES STILL HIGHER THAN SUPPLY..

BUT THERE ARE SIGNS OF COOLING NATIONWIDE.

AS INTEREST RATES SURGE PAST SIX PERCENT...

HITTING THEIR HIGHEST POINT SINCE 2008...

AN ESTIMATED 18 MILLION HOUSEHOLDS... THAT WOULD HAVE QUALIFIED FOR A MORTGAGE IN JANUARY.. ARE ESSENTIALLY FROZEN OUT OF THE MARKET... NO LONGER ELIGIBLE FOR THAT LOAN.

AND THOSE WHO CAN STILL AFFORD TO BUY...

A TYPICAL NEW MORTGAGE PAYMENT HAS SPIKED 52-PERCENT OVER THE LAST SIX MONTHS.

“We will see house price growth level off here and we’ll see some price decline in some of the more juiced up markets across the country. And in my mind that’s a correction when house prices start to go lower.”

MORTGAGE APPLICATIONS ARE DOWN MORE THAN 15-PERCENT COMPARED TO LAST YEAR..

DROPPING 5-PERCENT IN MAY ALONE.

THAT'S PROMPTING NEARLY ONE-IN-FIVE SELLERS TO DROP THEIR PRICE.

AND THIS WEEK, REALTY COMPANY REDFIN ANNOUNCED IT WOULD CUT HUNDREDS OF JOBS BECAUSE OF THE SLOWING HOUSING MARKET.