economy
The spring housing market is on, but mortgage rates just shot higher. Here's what to know.
This spring's housing market is on, but economic headwinds are pushing back most of the advantage that buyers have gained over the past year in affordability.
TL;DR
- Mortgage rates have risen sharply to 6.53%, negating some buyer affordability gains.
- The war with Iran has led to higher oil prices, increasing inflation and causing the Fed to reconsider interest rate policies.
- Homes are staying on the market longer, sellers are more willing to reduce prices, and overall inventory is increasing.
- Potential sellers are hesitant to list due to concerns about the war's economic implications.
- New construction faces an oversupply of homes, with builders offering incentives and cutting prices.
- Geographic markets show disparities in inventory and price appreciation.
- Economists express uncertainty about the housing market's outlook due to ongoing instability.