Tag Archives: Potential Home Sales

First American's latest Potential Home Sales Model revealed mortgage rates declined in November, "igniting cautious optimism in the industry.”

According to a new report from Redfin, near-7% mortgage rates continue to prevent both would-be homebuyers and potential home sellers from entering the market, despite the construction of new single-family homes nearing their highest level in almost 20 years.

“The housing market remains sluggish heading into the spring homebuying season. While mortgage rates have retreated from recent peaks, they remain elevated compared with one year ago,” Chief Economist Mark Fleming said.

“The spring season is typically the busiest time of the year for the housing market,” said Mark Fleming, Chief Economist at First American.

Housing market potential increased in November-December 2022 but remains lower than it was in December 2021.

“The higher the mortgage rate, the more sellers will go on strike and the more potential buyers will feel the impact of reduced house-buying power, but price appreciation will further slow and potential buyers can use adjustable-rate mortgages to regain some of that lost house-buying power,” said Mark Fleming, First American’s Chief Economist.

  First American Financial Corporation has released the latest Potential Home Sales Model for the month of July 2022, which uses proprietary data to measure what the healthy ...

Potential is defined as the latent ability for a thing to develop into something bigger in the future. Currently, the housing market is trying to find a new ...

According to First American Chief Economist Mark Fleming, rising rates may cool house price appreciation, and bring a new norm to the market.

Loosening credit standards and historic house price appreciation are just two of the trends driving the market during a time of year when it traditionally sinks.