In an article written by Lorie Knish for CNBC.com she states “The hot seller’s market in recent years prompted buyers to go above and beyond to seal the deals on their prospective homes, a recent survey finds.” She further quoting an article from Clever Real Estate, sharing that “72% of buyers int he past couple years have regrets about their home purchase”.
This spike is a result of rising inflation and Federal Reserve rate hikes. The consumer price index (CPI) rose to 8.5% which is the highest level since 1981. The Federal Reserve starting rate hikes in March was the first increase since 2018. It is expected that the Federal Reserve will continue with rate hikes due to current aggressive inflation.
In an informative article written by Jann Swanson for MortgageNewsDaily.com Fannie May has revised the timeline for its home sales forecast. There are multiple factors stated in the article that is affecting the forecast, including:
Mortgage loan applications for new home purchases dropped 9 percent in April 2021, and it was the third straight month of reduced application volume.
According to reports from the National Association of Realtors (NAR), millennials represent 37 percent of all homebuyers this past year, and have made up the largest share of homebuyers for 8 consecutive years. Another interesting fact from the NAR is that many of the homes being purchased are considered multigenerational homes that will house adult siblings, adult children, parents, or grandparents.