September has been showdown month between buyers and sellers. Not much is going under contract. I think most people expected mortgage interest rates to edge down due to the improving news on inflation. Then mid-month the Fed doubled down and rate went the other direction. They hit a 22 year high.
People are looking over their sholders trying to figure out where the recession is in this economy. People have jobs. Unemployment is low. Present home owners for the most part have equity which gives them flexibility to make decisions. The increases in food prices have taken a chunk out of people’s monthly budgets but that is easing off not escalating.
Higher rates do price some folks out of a purchase. But for the rest of the buyers out there, I anticipate they’ll get used to the new normal. At some point, the reason for wanting a different home will lure them into a decision. Hopefully, they will also appreciate that the bargaining power of having the upper hand. Because as soon as rates turn, there will be a new influx of competition for homes taking us back to the days of multiple offers.
Home Economics 