Pending home sales rose in June, up 0.3% from May, while month over month, contract signings increased in the Northeast and Midwest but decreased in the South and West.
Total commercial and multifamily mortgage borrowing and lending is expected to fall to $504 billion this year, which is a 38% decline from 2022’s total of $816 billion, according to an updated baseline forecast released in early August by the Mortgage Bankers Association.
Industrial remains the “it” sector of commercial real estate in the Midwest, and though there has been a pullback in sales activity as demand patterns continue to shift, experts’ concerns stem primarily from overwhelming demand, not a lack of it.
Real estate investors have done well. Rents have risen and home price appreciation has been quite exceptional. Now it’s time for investors to sell, says Lawrence Yun, NAR chief economist.
The recent spike in mortgage rates has created a so-called “golden handcuff” effect through which nearly 82% of homeowners feel “locked-in” by their existing low-rate mortgage, according to data from Realtor.com.