It seems that consumer confidence in the housing market has dropped nationwide this week amid the turmoil in Washington D.C. This was evident as the number of people applying for a home purchase loan fell for the second straight week compared to the same time period last year. The drop was seen even though mortgage rates have hit a 4 month low after a volatile period of ups and downs.
Could this drop despite the opportunity to get historically low rates reflect a lack of confidence in the housing market? In the Southwest Orlando real estate market, there were 350 homes sold in August compared to only 264 in September. The number of pending transactions also dropped from 378 in August to 258 in September. Although the declining numbers could be attributed to seasonal buying trends, many buyers have become desperate to buy homes since the Orlando real estate market’s low inventory created a strong seller’s market for the past 18 months, and it seems unlikely that such a sharp drop in pending transactions from one month to the next was just a seasonal adjustment. Now is the time to sell a home while interest rates are still low and there are still many buyers with the ability to purchase property.
According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, the number of mortgage applications fell 6 percent year over year, and 1 percent week over week, for the week ending on October 4th. Mortgage rates dropped from 4.49 percent to 4.42 percent, according to the Mortgage Banker’s Association.
Despite the decline in mortgage applications and pending transactions, experts still believe that the real estate market in Southwest Orlando will keep rising. Let’s hope for the best!
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