re: The average 30-year fixed mortgage rate jumps to 7.50%

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Why are they paying above asking price (unless that's the real market clearing price)?

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There was an epidemic of this kind of thing during and after Covid in which people would show up with cash and offer over asking in order to close immediately.



A cash sale beats the living frick out of a mortgage sale given all the headaches with banks, appraisers, etc.


As far as why it was happening, it was generally outflow from Cali and the NYC area who had cash on hand and decided they wanted specific houses in specific areas (Dallas, Nashville, etc) as they were still making in person rates while telecommuting to jobs in those high cost areas.


As far as corporations doing it, my guess is that real estate is speculative and they figured that controlling a lot of supply would give them a ton of income potential.


Keep in mind this was also right after the government foreclosure furlough in which a bunch of landlords were getting fricked by deadbeats being unwilling to pay.

A corporation has more resources than an individual to deal with this kind of thing, be it outright owning the property instead of it being mortgaged or having legal resources to kick out problem tenants that mom and pop landlords don’t.