As Fall starts to settle in, the U.S. housing market exhibits a shift of its own. Skyrocketing mortgage rates, combined with ever-climbing home prices, have created a challenging landscape for prospective home buyers. The 30-year fixed mortgage rate soared past the 7% mark, adding to the stress of an already volatile market. With all of these factors, it is no surprise that recent data points towards a decline in home sales for a number of consecutive months leaving potential home buyers wondering what will the real estate market do over the next several years.
This article from Forbes dives into a comprehensive analysis to understand the myriad of factors influencing the housing market currently and what to potentially expect down the road. Enjoy the article and give me a call with any questions you have or for help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: Forbes | Repost Houterloot 9/28/2023 -
As temperatures begin to cool, the housing market continues to fizzle, with blisteringly high mortgage rates and scorching home prices becoming too hot to handle for many would-be home buyers.
The national average 30-year fixed mortgage rate blasted through 7% in mid-August, reaching a 2023 high of 7.23%. As of September 21, the average 30-year fixed mortgage rate stands at 7.19%, according to Freddie Mac.
Meanwhile, year-over-year existing monthly home sales sagged in July for the second consecutive month, slipping by 2.2% to a six-month low, with all four major U.S. regions posting year-over-year sales declines, according to the National Association of Realtors (NAR).
Despite ultra-high mortgage rates and home prices, the market remains as competitive as ever, thanks to demand levels surpassing the ongoing inventory crunch and homeowners who locked in low-interest rates staying put. These and other factors perpetuate the perfect affordability crisis storm that continues to sideline many aspiring homeowners.
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