A term that is starting to pop up in housing market discussions is ‘mortgage rate urgency.’ What does it mean?
Simply, you can think of it along the same lines as Fear Of Missing Out. With Inflation hanging around longer than was originally expected and signs that mortgage interest rates will be rising soon, it simply means that buyers are feeling pressure to buy homes now before those interest rates rise.
Are people really rushing to buy homes before mortgage rates rise?
Simply, yes. Ali Wolf is a nationally recognized economist who specializes in Real Estate and Housing. Here’s what she tweeted on October 22:
September’s pending home sales were down 9.6% from the previous year. But don’t forget, last year saw unprecedented numbers of home sales. To compare it to a more reasonable year, September 2021 pending home sales are 31.2% higher than September 2019. AND, If you compare September 2021 to August 2021, you see an increase of 6.9%.
That means that even though home sales have been historically high, more buyers are signing contracts on homes before the interest rates rise and make monthly payments unaffordable.