D.C.-area homebuyers pull back as mortgage rates climb
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Washington's real estate showings and contracts are slowing down amid high mortgage rates.
The big picture: Mortgage rates recently crossed the 7% threshold and hit their highest levels in almost three years, causing mortgage applications to drop.
Why it matters: High rates are hitting the DMV as it's already grappling with housing affordability and economic uncertainty.
By the numbers: Showings were down almost 18% across the D.C. metro area when comparing the week ending Sept. 27 to the same period last year, according to BrightMLS.
- And new purchase contracts were down almost 20%.
- Meanwhile, the number of canceled listings in the region jumped almost 42%.
Plus: Homes are piling up. Active listings across the D.C. metro were up 20% from a year ago, while the typical time to contract stretched five days longer.
Zoom in: Loudoun County saw a 35% decrease in new purchase contracts during the year-over-year period — the biggest drop out of all the local jurisdictions.
- Fairfax city came in second at just over 33%.
What they're saying: "[Rates] will have a chilling effect on the D.C.-area housing market," Bright MLS Chief Economist Lisa Sturtevant tells Axios.
- While the DMV's year-to-date sales are currently tracking around the same as last year's, she anticipates that transactions and price growth will stall.
Zoom out: It's not just the DMV — the number of showings and new purchase contracts hit a four-year low throughout the entire mid-Atlantic when comparing the same year-over-year periods.
What we're watching: What happens with rates — and how that continues to impact the market long term.