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Rates hovered around 7% for a good part of this year.
This week, Wayfair reported a $42 million loss and its CEO compared the drop in demand to the one seen in the last financial crisis.
High interest rates often make home equity loans or cash-out refinance options unappealing.
With prices and mortgage rates high, people are “buying at the edge of what they can qualify for,” a real estate economist says.
Some sellers who have delayed putting their homes on the market are now doing so, but inventory is still lower than normal.
Falling interest rates on Treasuries could lead to lower mortgage rates, which are key to a recovery in the housing market.
Turns out what we’re seeing may not be optimism as much as less pessimism.
Mortgage rates have popped back up above 7%, sales have fallen and builder sentiment is down. 5% would get things moving, per one economist.
Normally, higher interest rates mean cheaper homes. Not this time.
Zillow find that million-dollar homes are proliferating — and not just in the usual high-cost metro areas like New York, San Francisco and Los Angeles.