Housing market isn't recovering yet, and home sales will hit new low

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Business News News

The housing market isn't recovering and will send home sales to a new low as mortgage rates stay elevated, Pantheon Macroeconomics says

Home sales are set to slump to a new low, as the US housing market can't start recovering so long as mortgage rates stay elevated, Pantheon Macroeconomics' chief economist Ian Shepherdson said.

"We are baffled by the emerging narrative in the commentariat that housing is now recovering, because it isn't," Shepherdson said in a note on Tuesday, pointing to growing optimism for a housing market recovery as mortgage rates pull back slightly.moved 6 basis-points lower to 7% over the past week, according to Bankrate's most recent survey.

But Pantheon said that doesn't change the bigger picture in the housing market, which is that a durable recovery won't happen until affordability improves.. Mortgage rates are still hovering near a 20-year-high, and a recovery in home sales is unlikely until mortgage rates begin to drop more meaningfully, Shepherdson said.mortgage rates will pull back to just 6%"The bulk of the drop in homes prices is yet to come; the lagged effect of the plunge in sales points to a steep and sustained drop," Shepherdson said.

Experts have sounded the alarm on the US housing market, as higher rates have shut out both prospective buyers and sellers from the housing market, which have sent sales lower and prices higher.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

FOX 7 Focus: Is Austin's housing market really 'crashing'?In this FOX 7 Focus, Ashley Jackson, president of the Austin Board of Realtors, joins FOX 7 Austin's John Krinjak to discuss the current state of the Austin housing market and what's next.
Source: fox7austin - 🏆 594. / 51 Read more »

Difficult housing market prompting people to move from California to TexasThe study, by StorageCafe, says that in 2021 alone, 111,000 people moved from the Golden State to the Lone Star State
Source: SpectrumNews1TX - 🏆 333. / 59 Read more »

Miami tops NYC as least affordable housing market after pandemic boomNortheasterners flocked to Florida to reduce their spend on rent and dish out less in taxes. The influx has since caused increased mortgage rates that are eroding the state’s all-alluring aff…
Source: nypost - 🏆 91. / 67 Read more »