Could The Housing Market Collapse Again? Recovery Talk 'Premature' After Mortgage Rates Surge Past 7%

As fears of inflation push mortgage rates back toward multi-decade highs, economists are warning the resurgence in borrowing costs will deal another blow to the precarious housing market, driving home sales to new lows and proving the recent recovery many hoped would mark a turning point may instead be a short-lived"mirage.

This surge in rates"dealt a fresh blow" to mortgage demand, says Pantheon Macro chief economist Ian Shepherdson, adding he's been"puzzled" by claims the housing market is starting to recover and instead expects total home sales will plummet to a new multi-year low by May if rates remain close to 7%. After collapsing more than 35%, home sales have remained relatively flat since November, but Comerica Bank economist Bill Adams calls the recent respite in the housing market"at least partly a mirage" fueled in part by unseasonably warm weather in much of the country, which helped bolster sales during what is typically the slowest season of the year.

The drag from very high interest rates is"again becoming clear," says Adams, noting mortgage purchase applications plummeted 44% year-over-year in late February to the lowest since 1994. Comerica forecasts existing home sales will drop more than 20% this year—pushing prices, which have alreadyOthers are more optimistic. In a Wednesday note, Wells Fargo economist Charlie Dougherty told clients it's"unlikely" that housing activity will experience a downturn similar to the one last year, but he acknowledged"persistent inflation stands to deflate the housing market's renewed optimism.

🤞🏽🤞🏽🤞🏽🤞🏽

الإمارات العربية المتحدة أحدث الأخبار, الإمارات العربية المتحدة عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Letter: Federal permitting reform is needed to support Utah’s housing marketDespite Utah ranking number one in building the most new housing per capita in the country, the demand for housing in Utah continues to outpace our supply. As a result, we have one of the lowest vacancy-for-home rates in the nation. Without corrective action, housing prices will continue to rise, denying many Utahns their dreams of homeownership. Not one mention of water, air quality, or transportation costs. Pretty much what you would expect from the construction/real estate business. Sorry, which home needs a Federal Permit? Maybe we should create a public housing developer to pick up the slack and actually build affordable housing
مصدر: sltrib - 🏆 316. / 61 اقرأ أكثر »

Housing crash: US will avoid 2008-style market collapseAnalysts say the US housing market will avoid a 2008-style crash and prices will only drop by 5% in 2023 Wanna bet? The crash is coming in Canada, which will be historic. These analysts must be working in real estate. The average US median home price has already dropped 11.5% from May until January so if prices stayed the same as they were in January then YOY decline would be 11.5 by May. Problem is prices are still declining each month.
مصدر: BusinessInsider - 🏆 729. / 51 اقرأ أكثر »

Metro Denver housing market crosses firmly into negative territory in FebruaryThe median price of a single-family home sold in metro Denver last month was $600,000, down 5.7% from the same month a year earlier Does that mean prices are going down or the price point for buyers is going down? If you hire me to run your social media I will never make a single typo
مصدر: denverpost - 🏆 13. / 72 اقرأ أكثر »

Metro Denver housing market crosses firmly into negative territory in FebruaryThe median price of a single-family home sold in Denver last month was $600,000, down 5.7% from the same month a year earlier, according to a monthly update from the Denver Metro Assoc. of Realtors denverpost Mine has been going back up since January
مصدر: DenverChannel - 🏆 239. / 63 اقرأ أكثر »

The Rise & Rise Of The Chinese EV Market — 17% Market Share In JanuaryAfter the December sales peak, a covid surge, the end of EV subsidies on January 1st, and the Lunar New Year celebrations (this time happening in January), one would expect a sales hangover in January,
مصدر: cleantechnica - 🏆 565. / 51 اقرأ أكثر »