What are the latest projections about where the current housing market is headed?
With spring approaching, we thought it would be the perfect time to share some insight on the state of today’s housing market.
Last November, the average 30-year mortgage rate hit a 20-year high above 7%. They are now down by just about a full percentage point, which is bringing new buyers to the market.
Mortgage applications are up by about a quarter since the end of last year, and the number of people contacting real estate agents to start the buying process has bounced back from a November 2022 low. A measure of signed real estate contracts also rose in December 2022 after six months of declines. Stocks and bonds have both rebounded strongly to start the year on the premise that inflation is coming down without triggering a recession.
That said, experts predict a slow year for the housing market. Activity across the board is still down from a year ago. Rates are still well above the 3% range from this time last year, but “the fact that they are a percent lower—no one is complaining about that,” says Michael Menatian, president of Sanborn Mortgage Corp. “If anything, they’re pleasantly happy.”
However, there is some good news: economists from Goldman Sachs Group Inc. said last month that they expect the worst of the downturn has passed.
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