Whitelaw and Sons Real Estate Morgan Hill
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Robert Whitelaw, Realtor®

Robert Whitelaw, Realtor®

Published:Nov 2, 2022

Born and raised in Silicon Valley, Robert has helped clients successfully buy, sell and invest in real estate throughout Santa Clara County. Robert uses his local market knowledge to help clients across Silicon Valley!

Even when interest rates dip, buyers are NOT borrowing. This could lead to a mortgage lending meltdown!

The numbers are nuts

Wells Fargo Home loans are off 90% from the same time last year! That’s right – that is no typo – down 90%!

Why are buyers not borrowing when the rate drops?

Clearly, buyers are not finding affordability – even when rates drop by some amount. There is really only one other factor that can encourage buyers to borrow.

The other factor

Prices. The bottom line is that if buyers will not or cannot borrow at current interest rates, the only number that can be moved to entice buyers is to see lower prices.

So what comes next?

Inventories are continuing to rise. Buyers are not jumping in at current levels. Some sellers who can afford to wait might move out of the market. Those that remain on the sellers that MUST sell. The pressure will be on for these folks to get their home sold and the only real option will be to lower their price.


  • https://www.cnbc.com/2022/11/02/mortgage-demand-falls-even-as-rates-slip-from-recent-highs.html
  • https://www.cnbc.com/2022/11/02/wells-fargo-mortgage-staff-brace-for-layoffs-as-us-loan-volumes-collapse.html
  • https://www.mortgagenewsdaily.com/news/11022022-mortgage-application-volume

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NAR Settlement – For Buyers and Sellers

The NAR settlement, once it is approved, is set to go into effect in the middle of July 2024. This will completely change how Buyers agent are compensated and we can count on chaos while the systems adjust to the new reality.

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