Due to recent mortgage rate increases that don’t appear to be reversing any time soon, some buyers, unfortunately, will no longer be competing for the few homes still out there. However, with a slight increase in inventory and a small decrease in demand, the market will be a bit more balanced, reducing some of the competition for homes. That will come as a welcome relief for many.
Remember, this time around is different. There are very few stated-income loans or interest-only loans. The vast majority are fully documented loans with down payments. Now that unemployment has been steadily decreasing, there are no signs of any future increase of distressed inventory (foreclosures or short sales). Any market adjustment that would take place at this point is far less likely to have the destabilizing effects we saw from 2007-2009, with credit freezing and the stock market nearly collapsing.