{"id":592,"date":"2022-06-11T16:15:51","date_gmt":"2022-06-11T16:15:51","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/06\/11\/prepare-yourself-the-u-s-housing-market-is-at-the-beginning-stages-of-the-most-significant-contraction-in-activity-since-2006\/"},"modified":"2022-06-11T16:15:51","modified_gmt":"2022-06-11T16:15:51","slug":"prepare-yourself-the-u-s-housing-market-is-at-the-beginning-stages-of-the-most-significant-contraction-in-activity-since-2006","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/06\/11\/prepare-yourself-the-u-s-housing-market-is-at-the-beginning-stages-of-the-most-significant-contraction-in-activity-since-2006\/","title":{"rendered":"Prepare Yourself: \u2018The U.S. Housing Market Is at the Beginning Stages of the Most Significant Contraction in Activity Since 2006\u2019"},"content":{"rendered":"

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\u2018I don\u2019t think that home sales are going to grind to a complete halt. They\u2019ll just slow. People will still be able to sell homes, but it may take you just a little bit longer than what it\u2019s been.\u2019<\/p>\n

Len Kiefer, deputy chief economist at Freddie Mac<\/span><\/p>\n<\/div>\n<\/div>\n

The U.S. housing sector is in the midst of the biggest slowdown in over a decade, one economist says. But don\u2019t expect prices to fall back down to earth just yet.<\/p>\n

\u201cThe U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006,\u2019\u201d Len Kiefer, deputy chief economist at Freddie Mac,\u00a0tweeted<\/a>.<\/p>\n

\u201cIt hasn\u2019t shown up in many data series yet, but mortgage applications are pointing to a large decline over summer,\u201d he explained.\u201d He said home-purchase mortgage applications are down 40% from their most recent peak in 2021.<\/p>\n

Purchases and refinance applications are in fact down to the\u00a0lowest level in 22 years<\/a>.<\/p>\n

The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006.<\/p>\n

It hasn\u2019t shown up in many data series yet, but mortgage applications are pointing to a large decline over summer.<\/p>\n

Purchase apps down 40% from seasonally adjusted peak pic.twitter.com\/s4Wl712MZZ<\/a><\/p>\n

\u2014 Len Kiefer (@lenkiefer) June 9, 2022<\/a><\/p>\n\n

Mortgage applications as a data point \u201cgives you a sense of where the market might be headed,\u201d Kiefer said in an interview with MarketWatch, \u201cbecause that\u2019s the early stages of when people are looking to buy a home. And if the volume of applications falls, that tends to indicate that in a month, month and a half, mortgage originations of home closings will also decline.\u201d<\/p>\n

Kiefer expects home sales to henceforth \u201cslow quite a bit over the summer.\u201d<\/p>\n

Meanwhile,\u00a0Freddie Mac data released on Thursday morning<\/a>\u00a0revealed that mortgage rates have risen, on the back of rising interest rates and inflation.<\/p>\n

To be clear, \u201cI don\u2019t think that home sales are going to grind to a complete halt,\u201d Kiefer stressed. \u201cThey\u2019ll just slow. People will still be able to sell homes, but it may take you just a little bit longer than what it\u2019s been.\u201d<\/p>\n

Would home prices fall as a result of a \u2018contraction\u2019?<\/h2>\n

While some may jump to the conclusion that weaker data represents a possible fall in home prices,\u00a0experts caution otherwise<\/a>.<\/p>\n

\u201cDoes this mean that house prices are going to crash? I don\u2019t think so,\u201d Kiefer said.<\/p>\n

Freddie Mac\u2019s research shows that when interest rates go up, while home sales and mortgage originations go up, house prices won\u2019t necessarily fall\u00a0or<\/em>\u00a0rise. \u201cThey tend to be stickier,\u201d Kiefer said.<\/p>\n

\u201cAnd while the rate of growth tends to slow, they don\u2019t tend to fall,\u201d he added.<\/p>\n

The post Prepare Yourself: \u2018The U.S. Housing Market Is at the Beginning Stages of the Most Significant Contraction in Activity Since 2006\u2019<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images \u2018I don\u2019t think that home sales are going to grind to a complete halt. They\u2019ll just slow. People will still be able to sell homes, but it may take you just a little bit longer than what it\u2019s been.\u2019 Len Kiefer, deputy chief economist at Freddie Mac The U.S. housing sector is in…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":593,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=592"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/592\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/593"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=592"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}