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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]Mortgage applications sink to their lowest level since before the pandemic hit[/b]

[url]https://www.cnbc.com/2021/07/07/mortgage-applications-sink-to-lowest-level-since-before-pandemic.html[/url]

[quote]Falling mortgage rates didn’t spur demand.[/quote][/quote]

RedFin data shows major slowdown of houses sold in the last month or so while inventory increased. [/quote]

Which is good, all the pandemic did was move up peoples timelines to move from the city to the burbs. They did it all at once hence the scramble. That demand has been satiated to a large part. You aren’t seeing investors buying multiple homes or other nonsense like in 2005. [/quote]
Redfin data also indicates that suburban buyers are very stretched. In Bethesda and Arlington zip codes I checked, down payments are only averaging about 10%. In DC it’s a different story. All of the high demand and competitive neighborhoods have at minimum 20% average down payment and many, like CCDC are 30%+. Suburbs look to be maxed out. 
[/quote]

With interest rates this low down payment percentage seems like a strange method of determining who "has money" or not.  Who is to say someone putting down 10% is doing it because that's all the money they have or because they decided to keep their money in a market that has averaged 40% returns in the preceding 12 months?

I'm not in the market for a house right now, but if I was, I'd be putting the bare minimum down for a competitive offer.  You can always pay off your mortgage early, but you can't recoup lost opportunity cost in the market.    [/quote]

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