Inventory Growth is Slowing Down even with rates soaring High

Breaking!!!  

Mortgage rates hit a 23 year high last week, as per some of the labor data. The unfortunate part of it is that those higher mortgage rates did not spur inventory growth in recent weeks, preventing the chance of benefit expected when the rate rises. A higher mortgage rate has pushed the purchase application data down by 6% weekly.

Weekly Housing Inventory Data

One of the calls by Housingwire that was proven wrong was the premise that when mortgage rates rise above 7%, the active inventory would eventually grow between 11000 and 17,000 for a few weeks at least. However, this did not happen. On the other hand, as mortgage rates pushed higher, active inventory increased only by 2286 single-family homes.

The seasonal peak for the inventory last year was on Oct. 28. Last week, Altos Research revealed –

• Weekly changes in inventory(Sept. 29-Oct. 6): Rising from from 534,746 to 537,032.
• Last year, in the same week (Sept. 30-Oct. 7), the inventory rise was from 561,229 to 562,249.
• The inventory bottom for 2022 was 240194.
• The inventory bottom for 2022 was 240,194.
• The peak for 2023 so far is 537,032.
• For context, this week’s active listings in 2015 were 1,168,416.

The new listing data is trending at a meagre level with a poor reflection in the history for 13 months. However, the decline was orderly. Although the new listing increased to some slight length, it has been still trending at the lowest-ever level.

The only positive news for 2023 is that the new listening data hasn’t dropped to the bottom, even though the rates are higher this year compared to the past year.

Here is a year-over-year new listing data for this week –

• 2023: 58,103
• 2022: 58,083

However, there is one housing data that most people don’t know: every year, one-third of the homes have one-third of all homes have seen a price cut. The price cut last week was lower compared to the same time last year by 4%.

This does surprise a lot of people because the mortgage rates and the price for homes have been higher this year compared to the last.

Read Also:

• Is Your Next Mortgage Around 7% Or 8%? It Varies If You Shop Around
• What Is Property Management? – Importance, Applications, And More
• Onward Home Mortgage, A New Georgia Based  Real Estate Company Starts Operating