‘Flippers’ F**ked As Mortgage Rates More Than Double In 10 Months

Home flippers are under increased stress as prices decline and transaction volume plummets…

Mortgage rate chart courtesy of Mortgage News Daily, annotations by Mish.

Death of Deals Puts Stress on Flippers

Since the beginning of the year, mortgage rates have gone from 3.35 percent to 7.30 percent.

Prices have not declined much yet so the result is a dearth of deals adding to the stress of flippers.

Alex Thomas has an interesting Tweet Thread on flipping homes.

Big takeaways from our survey of fix-and-flippers last week: 1) Rates have massively slowed transactions and prices are falling broadly. 2) Lots of talk about flippers changing strategies, holding-and-renting instead of flipping, or exiting the space entirely.

COMMENTARY 🧵->

— Alex Thomas (@housing_alex) November 3, 2022 Flipping Homes

Big takeaways from our survey of fix-and-flippers last week: 1) Rates have massively slowed transactions and prices are falling broadly. 2) Lots of talk about flippers changing strategies, holding-and-renting instead of flipping, or exiting the space entirely.

#Atlanta flipper: “Many highly-leveraged flippers will need to go out of pocket to sell or will default on no-recourse loans. We will not see improvement until the 2nd half of 2024. Many will not make it to that point and there will be some bargains for cash-flush investors.”

#Baltimore flipper: “Sellers are still not reacting to market shifts. Sellers need to lower prices.”

#Boston flipper: “It’s tough to say how far prices will drop and it’s tough to buy projects based on future values.”

#Boulder flipper: “Higher rates are making things difficult, but also reducing competition. Things

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