Rates Fell, But Buyers Didn’t Bite
Even with mortgage rates at their lowest point in a year, home sales haven’t moved.
Applications are still down more than a third from pre-pandemic levels, showing how weak real demand really is.
That slowdown leaves more sellers sitting on aging listings and more lenders holding assets they’d rather unload.
For investors, it’s the setup for a classic buyer’s market, with distress building while competition stays quiet.
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Home Sales Have Not Improved at All Despite the Lowest Mortgage Rates in a Year
Compared to the same week in 2019, purchase mortgage applications were down by 34%. The immensely hyped theme that lower mortgage rates would unleash waves of demand just hasn’t panned out.
Who Takes the Losses on Office CRE?
Office Properties Income Trust, a major office REIT, has filed for bankruptcy. Shareholders have been completely wiped out, losing nearly $2 billion in value. Meanwhile, the banks that provided mortgages appear to have emerged largely unscathed.
Fed Cuts Rates, but Powell Says December Cut Is No Guarantee
While lower mortgage rates would not fix the housing affordability crisis for the typical household, with so many potential buyers shopping on the edge of what they afford, a dip in mortgage rates could bring both buyers and sellers online.
One in Three Manhattan Condo Owners Lost Money When They Sold in the Last Year
One in three Manhattan condo sellers lost money over the past year, revealing a “lost decade” of stagnant prices. This poor performance stands in stark contrast to the double-digit gains seen in the national housing market.
Zombie Foreclosure and Vacancy Rates Creep Down
The national vacancy rate for homes has dipped slightly to 1.32%. Similarly, the rate of “zombie” foreclosures has also edged down to 3.25%. However, certain areas, like parts of Ohio and Iowa, continue to see significantly higher zombie foreclosure rates.
