14 million mortgages were refinanced during ‘pandemic boom.’ That makes life very difficult for home buyers.

May 15, 2023 By: Lexi Malen

In reviewing this article, it emphasizes what I think is the biggest reason for the tight housing inventory.  I would coin it “interest rate freeze out.”  If you put yourself in the shoes of a perspective move up buyer why would they take on a new home that has probably appreciated 30-50% over the past few years and further give up their interest rate that is probably sub 3% for a potentially overpriced home and a rate that is double what they are currently paying.  With these move up buyers frozen in their home due to the previous factors they simply are not listing their home.

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Article: 14 million mortgages were refinanced during ‘pandemic boom’. That makes life very difficult for home buyers.

Source: www.msn.com

Article Highlights

• The great pandemic mortgage refinance boom is most definitely over, but the aftershock is still rippling through the housing market
• The average homeowner who refinanced saw their monthly payment drop by $220, the Fed said.
• Homeowners appear reluctant to sell. Sales of previously-owned homes fell 22% year-over-year in March, according to the National Association of Realtors.

  Read Full Article on MSN.com