Is housing madness ending?

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Photo by R. A. Schuez.

Homes for sale in Houston.  According to the conservative American Enterprise Institute, the number of people using mortgage rates to buy a new home has dropped below pre-pandemic levels.

Homes for sale in Houston. The number of people using mortgage rates to buy a new home has dropped below pre-pandemic levels. according to the conservative American Enterprise Institute

Steve Gonzalez, Houston Chronicle / Staff Photographer

The leading indicator suggests that home sales may slow, retreating to pre-pandemic levels.

The number of people interested in buying a home who fixed the interest rate on their mortgage application last week fell below the number in the same week of 2019. according to the American Enterprise Institute, a Washington think tank.

In the week ending August 13, the volume of purchased fixed-rate mortgages fell 8 percent from the same week in 2019. Compared to all-time highs in 2020, it is down 32 percent.

“Time will tell if this week’s drop will be an outlier or a more permanent return to the still high volumes set in 2019,” the report said.

The Mortgage Bankers Association, which tracks home purchase mortgage applications, noted that volumes fell for two weeks in a row. It was 19 percent lower than in the same week a year earlier.

rebecca.schuetz@chron.com;

twitter.com/raschuetz



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