Home buying demand skyrocketed during the pandemic as interest rates collapsed and an influx of Americans started working from home. However, the Fed’s rate hikes have quickly spurred a reversal. Mortgage originations jumped from $2.3 trillion in 2019 to more than $4 trillion in 2020 and 2021, but demand has since plummeted to the lowest level in more than two decades.

“Rates are significantly higher than they were a year ago, which is why applications for home purchases and refinances remain depressed,” says Joel Kan of the Mortgage Bankers Association. “Purchase activity is hamstrung by ongoing affordability challenges and low inventory, and homeowners still have reduced incentive to apply for a refinance.”

Share this:
Mark Danforth Lomas

Recent Posts

Lights, Camera, Santa Barbara Film Festival

The 40th Annual Santa Barbara International Film Festival is rolling out the red carpet Tuesday,…

2 weeks ago

Santa Barbara Real Estate Insights

The Santa Barbara real estate market in 2025 is quite dynamic and continues to attract…

2 weeks ago

Martin Luther King Jr.

You may be wondering why a real estate blog would post something about Martin Luther King.…

1 month ago

The Fire

Nearly a hundred thousand Los Angeles County residents are still under evacuation orders as of…

1 month ago

Welcome Angelinos

To our friends and neighbors affected by the recent devastating fires in Los Angeles, Santa Barbara extends…

1 month ago

Rent Control, Proposition 33, and Proposition 13

In this post we will address some of the pros and cons of Rent Control…

2 months ago