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My, How Quickly Things Change

For most of 2021 and the better part of 2022 the housing market was both as robust as it was challenging.  The robust part of it is pretty self-explanatory, especially to anyone who was trying to buy, or even rent a home for that matter.  At the same time, challenges unlike many had never seen nor experienced were around every corner.  Offers by the dozens, waiver of contingencies, cash buyers negating those attempting to capitalize on record low interest or just not in a position to offer cash, record setting levels of low inventory, to name a few.  Then in a matter of a few months we are now in a place where mortgage applications are at 22-year lows as rates have effectively doubled since January 1st.  This stems from what many perceive to be a knee-jerk reaction to stave off inflationary pressures, but the sad part is this should have been addressed going well back into last year as inflation was on the rise the whole time.  The Fed and the FOMC chose not to act, instead suggesting that inflation was transitory despite evidence to the contrary.  Regardless, they (The Fed and the FOMC) seem poised for an even larger hike at the next meeting, but only time will tell.  Housing bubbles come in all shapes and sizes and for various reasons, yet they share one common denominator... eventually the bubble bursts.  It's too early to say that's what is happening here, but certainly this is not the direction anyone wanted to take to cool off a hot market.  Stay tuned and remember to consult with your industry professionals every step of the way no matter if buying, selling, or renting.  #MortgagePllications #InterestRates #BuyingRealEstate #sellingRealEstate

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