Pending Home Sales Rise
Mortgage rates went down at the end of 2022 - albeit briefly - and home sales jumped as a result. This is an indicator that it is not affordabillity but interest rates that are tamping down demand. The take away is that once the mortgage market begins to move, and buyers have confidence they know the direction is down and will remain that way, we can expect all the sideliners to move back into the market relatively swiftly and with confidence.
Although it varied by region of the country, the National Assocation of Realtors® released this graphic showing the rise in pending home sales (contract signings) to highlight this movement: