Demand among home buyers is cooling off

Due to the current high cost of buying a home, demand among buyers has slowed. As a result, many sellers are seeing their homes sit longer on the market. Recent moves by the Federal Reserve are designed to combat inflation by reducing demand. While home prices had continued the climb to record highs in June, currently the number of sales is falling. New applications for mortgages are also dropping according to the Mortgage Bankers Association. “Increased economic uncertainty and prevalent affordability challenges are dissuading households from entering the market, leading to declining purchase activity that is close to lows last seen at the onset of the pandemic,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.