Image Source: Instagram
With Federal Reserve Interest Rates Set To Rise, How Will The Housing Market Be Affected?
Image Source: Instagram
Mortgage rates have more than doubled since the Federal Reserve first raised interest rates more than a year ago to tame inflation.
Image Source: Instagram
Experts say the Fed will not stop from raising the interest rate again on Wednesday.
Image Source: Instagram
The expectation that higher mortgage rates would cool stratospheric housing prices hasn't entirely borne fruit.
Image Source: Instagram
Rate hikes have caused both homebuyers and home sellers to sit on the sidelines.
Image Source: Instagram
Housing prices dropped slightly year-over-year in February, but a lack of inventory and a strong jobs market have contributed to stubbornly high home prices despite much higher mortgage rates.
Image Source: Instagram
Housing prices dropped slightly year-over-year in February, but a lack of inventory and a strong jobs market have contributed to stubbornly high home prices despite much higher mortgage rates.
Image Source: Instagram
Will another rate hike further dampen the spring housing market? Experts weigh in.
Image Source: Instagram
Taylor Marr, Redfin Deputy Chief Economist, says the Fed will almost certainly raise the Federal Funds Rate target by another quarter point on Wednesday.
Image Source: Instagram
Confirmation of a pause could put downward pressure on long-term bond yields and homebuyers could see some mortgage rate relief, but if the Fed hints strongly that another rate hike is likely, mortgage rates may not drop much, he says.
Image Source: Instagram
“The impact on mortgage rates will be what ultimately determines if the housing market gets a boost or is dampened further,” says Marr.
Image Source: Instagram
National Association of Realtors’ chief economist Lawrence Yun believes mortgage rates will fall in the second half of the year, boosting homebuying.
Image Source: Instagram
Consumer confidence levels, even more than the cost of borrowing, could decide how the housing market will fare, according to Lisa Sturtevant, chief economist at Bright MLS.
Image Source: Instagram
Confidence in the U.S. economy fell in April, according to the latest report from the Conference Board.
Image Source: Instagram
The business group’s Consumer Confidence Index decreased to 101.3 in April from a reading of 104.0 the month before.
Image Source: Instagram
Consumers became more pessimistic about the outlook for both business conditions and labor markets.
Image Source: Instagram
Meanwhile, consumer inflation expectations over the next 12 months remain essentially unchanged from March, according to the survey.
Image Source: Instagram
An economic downturn later this year, even a mild one, could send mortgage rates a little lower in the second half of the year, says Sturtevant.
Image Source: Instagram
“Consumer confidence, which dipped to a nine-month low last month, could be the most important metric to watch,” says Sturtevant.
Image Source: Instagram
“How people are feeling about economic uncertainties could be the key driver of what the housing market looks like in the second half of the year.”