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High mortgage rates, low inventory keep the housing market tight

Feb 19, 2024
High interest rates and limited inventory are key factors in restricting affordability.
The "mortgage lock-in effect" is part of what's keeping the inventory of homes on the market low right now.
Frederic J. Brown/AFP via Getty Images

Is rising mortgage debt a bad sign for the economy?

Feb 12, 2024
Mortgage debt has grown 30% since before the pandemic. But the majority of mortgage debt holders have rates below 5%.
"When you take mortgage debt as a share of income, it’s still relatively manageable," said Wells Fargo's Shannon Grein.
Justin Sullivan/Getty Images

Profits from sales of median-price homes fell slightly last year, but are still pretty huge

Jan 25, 2024
People who sold a median-price home last year made more than $120,000 in profit on a typical sale, according to a new report out today from the property data company ATTOM.
High home sale profits might be a sign that the market is starting to normalize.
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Lower mortgage rates open the door for homebuilders

Jan 25, 2024
Some builders are starting to see more interest from buyers, including those who spent 2023 on the sidelines, waiting for better rates.
"It feels like there’s some pent-up demand," for homebuilding, says Clint Mitchell of Estridge Homes in Indianapolis. Above, home construction in Vermont.
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Home prices aren't guaranteed to skyrocket this year

Jan 19, 2024
Housing demand has been improving in recent months, as mortgage rates have ticked down. And while that's putting upward pressure on home prices, there are a few factors that could keep a lid on home price appreciation.
One factor that's already been increasing housing inventory is new home construction.
George Rose/Getty Images

Will 2024 be the year the housing market gets slightly less tough?

Dec 27, 2023
High mortgage costs, low supply of houses for purchase and high rents made for a pretty bleak year. But there's a glimmer of light on the horizon.
“Single-family houses are starting to seem like a luxury good," said Chris Mayer of Columbia Business School.
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Why a 0.08% drop in the mortgage rate might seem bigger than that

Dec 15, 2023
There’s research that shows when the left-most digit of a number changes, we tend to give the change more weight.
Though rates coming down may spur some to buy, others might take it as a sign that rates will continue to fall — and wait to see how far they'll go.
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With high prices and interest rates, homebuyers feel the pressure

Dec 8, 2023
Realty firm Redfin said homes are less affordable than at any time since they started tallying the numbers 11 years ago.
Someone with median income would need to spend more than 40% of their monthly wages to afford the median home this year, a new report by Redfin shows
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With many homebuyers priced out, builders try to sweeten the deal

Oct 25, 2023
A lot of homebuilders are working with lenders to offer lower mortgage rates — or they're offering other incentives like money towards closing costs.
ANNVIPS/iStock / Getty Images Plu

Homebuyers face a double whammy: rising mortgage rates and rising prices

Oct 5, 2023
The average monthly payment on a new mortgage rose 46% in 2022, and home prices and mortgage rates have continued to climb in 2023.
With home prices and interest rates so high, people are increasingly having trouble qualifying for a mortgage.
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