Fed’s “higher for longer” rate strategy could keep home sales from rebounding in 2024 or limit the strength of a recovery, according to two closely followed forecasts.
Category: inflation
Mortgage rates hit 20-year high as demand ‘close to multi-decade’ low
Homebuyer demand for mortgages inched up slightly last week, as rates climbed to the highest level in more than two decades, according to the Mortgage Bankers Association’s weekly survey.
Housing groups urge Federal Reserve to stop hiking rates
MBA, NAR and NAHB say uncertainty over the Federal Reserve’s next moves is disrupting the housing sector and threatening to send the U.S. economy into a tailspin
Soaring rates baffle economists, frustrate housing leaders
Economists are scratching their heads and housing industry leaders are venting their frustrations as mortgage rates continue a relentless climb to new heights not seen in more than two decades.
Mortgage demand fades as buyers watch rates hit 2-decade high
Fed’s “higher for longer” rate strategy drives yields on long-term Treasurys higher, with mortgage rates following to highest levels in over 20 years, MBA survey shows.
Fed stays put but is prepared to hike rates one more time this year
Treasury yields, a barometer for mortgage rates, barely budged Wednesday as bond market investors look ahead to next year when the Fed is expected to start bringing short-term rates back down.
Consumer homebuying sentiment has plateaued at ‘pessimistic’
Most Americans polled by Fannie Mae last month said they would rather buy than rent, but a record-high 82 percent also said August was a bad time to buy.
Interest rates stay anchored after Fed chair’s hawkish speech
After an initial swoon, bond markets take Federal Reserve Chairman Jerome Powell’s tough talk on inflation in stride, but the housing sector remains vulnerable to rate hikes.
Economy’s strength could keep a damper on existing-home sales
Lack of inventory driven by mortgage lock-in effect may persist if the Federal Reserve maintains a ‘higher-for-longer’ rate strategy to combat inflation, Fannie Mae economists said.
Americans resigned to high home prices, mortgage rates: Fannie Mae
Consumer confidence in the housing market “appears to have plateaued at a relatively low level,” said Fannie Mae Chief Economist Doug Duncan in a new homeowner survey released on Friday.