Housing Prices Will Keep Getting More Expensive

Source: Libertarian Institute
by Ryan McMaken

“As mortgage rates have risen this year, the demand for home purchases has fallen. That has spelled trouble for the home construction business. Homebuilder confidence dropped for the 10th straight month in October. … The University of Michigan’s index of buying conditions for homes has fallen to the lowest level since 1982. Meanwhile, as of this week, mortgage demand for home purchases is ‘down 41% from a year ago and close to a seven-year low.’ Naturally, this has been a sizable drag on the sale of newly constructed homes. … It’s getting more expensive to borrow money up and down the food chain in housing, and that’s slowing down new construction of both for-purchase and for-purchase housing. For anyone concerned about the availability and affordability of housing, this is bad news.” (11/17/22)