The housing market was already painful, ugly and anxious. Now the 8% mortgage rate is back
Publishing timestamp: 2023-10-21 08:00:01
Summary
The housing market is facing challenges due to high mortgage rates, high prices, and tight supply. Buyers and sellers are hesitant to enter the market, leading to a decline in sales. The market is different from previous crises as foreclosures are low and homeowners have high equity. Some metropolitan markets may see an upswing in sales, but overall, the housing market is expected to decline. Builders are offering incentives to buyers, but construction is still not meeting demand. Apartment rents are cooling off, reducing the incentive to buy, but demand for rentals is rising. Buyers face a conundrum of purchasing now at higher rates or waiting for rates to drop, potentially leading to bidding wars.
Sentiment: NEGATIVE
Keywords: u.s. economy, dr horton inc, compass inc, business news, real estate, lennar corp, mortgages, housing,
Source: https://www.cnbc.com/2023/10/21/housing-market-is-painful-ugly-anxious-with-8percent-high-rate.html