The Balance Today: News You Need To Know on Dec. 21, 2022

Reports this week have been a little doom and gloom about the near future of the housing market. Builders aren’t confident in their outlook for homebuying activity, and in turn, aren’t planning on building as many houses as they did in the past.

Existing homes aren’t faring much better, as high interest rates drive mortgages higher and discourage people from buying new homes. Fewer buyers has led to some reluctance from homeowners to list their properties.

According to a report released today from the National Association of Realtors, existing home sales fell 7.7% in November and the total number of homes available for purchase were down 6.6%, remaining near historic lows. 

As a result of fewer options and a decline in affordability, the Mortgage Bankers Association said today that applications to purchase a home were down once again last week.

But despite all the bad news, there might be some things for you to look forward to in the upcoming year’s housing market. 

Affordability has been hampered by higher interest rates in the past few months, but those high mortgage costs have caused sellers to lower the asking prices of their homes. And with mortgage interest rates expected to fall in the coming months, that could open up an opportunity for shoppers who have been waiting for the right time to buy a home.