This comeback will be led by volume rather than price increases. Like the economy, the housing market goes through boom and bust cycles, including expansion, hyper-supply, recession, and recovery. Right now, the global housing market is at a turning point and about to switch into its recovery phase, said a team of Morgan Stanley strategists in a recent client note.
"While the US mortgage market is usually 30 year fixed, no other economy benefits from such high proportion and long tenor mortgage structure – the longest fixed duration in most economies is 3 or 5 years," Morgan Stanley strategists including Michelle Weaver wrote."These differences are highly important anticipating local housing cycles and economic implications."
On a positive note, interest-rate hikes for this cycle may be ending soon. On Wednesday, the Federal Reserve increased its benchmark rate by another 25 basis points, bringing the fed funds rate to a range of 5.25% - 5.5%. With one more potential rate hike, things are expected to begin cooling off.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: CNBC - 🏆 12. / 72 Lire la suite »