It appears that wealthy buyers are holding off for the time being as seen in a growing number of luxury homes that are sitting on the market, another indication that high prices and concerns about a recession are beginning to weigh down the housing market.
Toll Brothers, a luxury home builder, shared last week that orders for new home developments in California have plummeted 36 percent compared to last year.
Low mortgage rates and a cooling off in price gains are prompting would-be entry level buyers to get in the market. This is driving demand for starter-homes, which are more moderately priced, to skyrocket.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.