People are curious about what is happening with the real estate as mortgage rates continue to rise.
Here is a basic summary that is easy to understand:
-The recovery is still occurring but it is at a more normal pace.
-First time buyer activity is slowing down, but it is not because of rising mortgage rates but because the most qualified buyers have already purchased. Some first time homebuyers do not have the credit scores necessary to afford a loan to purchase a home.
-Mortgage lending is only getting slightly more aggressive and won’t heal completely until the Dodd-Frank QRM rules get defined.
-Home sizes are rising and the number of people looking to purchase larger homes is much greater than in previous years. However, as older buyers are choosing to downsize, the first-time buyers are being forced to buy a smaller home based on inventory.