NELLES: Will The Housing Market Collapse Next?

The U.S. housing market continues to stumble as rising interest rates reduce the demand for mortgages and make homes more difficult to sell. But will the bottom fall out of the market? The 30-year “fixed-rate mortgage averaged 6.94%… as of Thursday (October 20, 2022), up from 6.92% a week ago… A year ago this time, the 30-year rate averaged 3.09%.” As one would expect, these high mortgage rates are driving applications to near record lows. “Mortgage applications decreased 4.5% on a seasonally adjusted basis for the seven-day period ending October 14.  Application activity fell for the ninth time in 10