The Mortgage Bankers Association conducts a weekly survey designed to capture the demand for mortgages across the country. And according to the latest survey released on October 12th, mortgage applications (for purchase loans, excluding "refis") decreased 39% compared to the same week in 2021. Note from the chart below, mortgage demand has slipped considerably in September and October of 2022.

How does this trend impact the Madison area real estate market? 

Well, up until now, inventory has remained very low across all of Dane County. If mortgage demand does continue to dip by 40% (or more), we could see local home and condo inventory begin to grow again. As inventory does begin to grow, then marketing times will increase and many sellers will become more flexible with their terms and pricing. And of course, as inventory grows, buyers will find the market a little easier to navigate. 

Stay tuned for more market insight in the weeks and months ahead. In the meantime, please feel free reach out to us with all of your real estate-related questions. We'd love to hear from you and be your trusted real estate resource as our market continues to evolve in 2022.