Looking To Buy a home? You Might Want To Wait

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What's Happening Today

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.

- Taylor

Editors' Picks

U.S. Rent Inflation Is Slowing Fast in New Index Built by Fed Team (Bloomberg)

5 Reasons Not To Buy a House and 5 Reasons You Should (The Balance)

Government Programs That Can Help You With Your Mortgage (The Balance)

States Attempt To Help Americans Facing Rising Energy Costs (Wall Street Journal)

Why It's Hard To Predict What the Economy Will Look Like in 2023 (New York Times)

Unusual Economic Indicators and How They Predict Recessions (The Balance)

Best Sectors To Invest In for the Long Term (The Balance)

Term of the Day

Bridge Loan

A bridge loan is a temporary loan secured by your existing property. It "bridges" the gap between the sales price of your new home and your new mortgage on that residence in the event your existing home doesn't sell before closing.

A buyer typically takes out a bridge loan so they can buy another home before they sell their existing residence, to raise the cash for a down payment.

Off the Charts

Consumers' feelings about the economy have picked up significantly after two months of declines, according to new data from the Conference Board released today. The Conference Board's Consumer Confidence Index rose nearly 7 points this month, reaching its highest level since April. That's significantly higher than economists expected and a good sign for spending going into 2023.