New York Times (April 12)
“More economists are paring their bets that the Fed will cut rates after the latest Consumer Price Index report.” The new consensus of “higher-for-longer inflation… has hit the U.S. housing market like a thunderbolt. Home prices and mortgage rates are climbing again, dashing hopes that financing costs would fall this year and adding another economic question that could hang over the presidential election campaign.”
Tags: CPI, Economists, Fed, Financing costs, Home prices, Housing market, Inflation, Mortgage rates, Rates, U.S.
Washington Post (December 2)
“The debate now is when the Fed will start cutting interest rates. Stocks ,, come by May. That would certainly help the housing market, which has frozen with mortgage rates at the highest levels in about two decades.”
Tags: Betting, Cutting, Debate, Fed, Frozen, Highest, Housing market, Interest, Investors, Mortgage rates, Rallying, Rates, Stocks
Wall Street Journal (July 20)
“With American homeowners “reluctant to sell because they can’t afford to give up the low mortgage rates they have now,” homebuyers are increasingly turning to new construction. Just over a million existing homes were on the market at May 31, a record low. In contrast, “newly built homes accounted for nearly one-third of single-family homes for sale nationwide in May, compared with a historical norm of 10% to 20%.” This marks “another example of how this housing market is behaving like no other.”
Tags: Construction, Existing, Homebuyers, Homeowners, Housing market, Mortgage rates, Newly built, Record, Reluctant, Sell, Single family, U.S.
Fortune (September 4)
“The Pandemic Housing Boom saw U.S. home prices spike an unprecedented 43% in just over two years. But that’s over now: Spiked mortgage rates have pushed the U.S. housing market into a sharp slowdown that could threaten some of those gains.” Estimates on potential 2023 home price changes range from +2.4% to -15%, with nearly all certain that some regions will decrease.
Tags: 43%, Gains, Home prices, Housing boom, Mortgage rates, Pandemic, Slowdown, Spike, Threaten, U.S., Unprecedented
Houston Chronicle (June 17)
“U.S. mortgage rates had their biggest one-week jump in 35 years…. The 30-year rate climbed from 5.23% last week to 5.78% this week, the highest its been since November of 2008 during the housing crisis.” This is likely to accelerate the trend as higher borrowing rates have already been cooling the housing market. “Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared.”
Tags: 2008, 30-year rate, 5.78%, Borrowing, Buyers, Home prices, Housing crisis, Jump, Mortgage rates, Sales, Soared, U.S.
