Home News Home buyers, sellers ‘waiting on sidelines’ is a ‘good play’ in real estate market: CEO

Home buyers, sellers ‘waiting on sidelines’ is a ‘good play’ in real estate market: CEO

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20 and 30 year fixed mortgage interest rates depressed in the last few daysAccording to one real estate expert, that doesn’t mean it’s the right time to buy or sell your home.

“People who are actually buying the bonds that back their 30-year mortgages are fleeing for safety,” said Patrick Carroll, founder and CEO of Carroll.Morning with MariaThursday. “They are afraid of everything out there that no one can really predict.”

The 30-year fixed rate recorded its biggest weekly drop since 2020 after reaching 5.43% as the 20-year fixed rate fell to 4.5% on Tuesday.

Real estate investors have said they don’t believe lower mortgage rates will stimulate demand among home buyers and sellers, and expect further rate hikes by the Federal Reserve.

Housing industry insiders warn US is on housing affordability ‘crisis’

Asked whether low interest rates meant a buying and selling opportunity, Carroll said, “I think it’s a good opportunity to be on the sidelines and wait a little bit.”

Carroll founder and CEO Patrick Carroll said in “Mornings with Maria” on Thursday, August 4, 2022, that people who buy bonds that support fixed 30-year mortgage rates are taking a “flight to safety.” said that (Getty Images)

Investors’ biggest concern remains, says Carroll Continued Russian aggression into Ukraine and market impact.

“When I talk to investors, that’s their biggest fear,” said the real estate expert. “You may be seeing the bond reacting temporarily, but I think it’s going back to normal over time.”

Mortgage rates are expected to rise in the long term, but that could mean lower prices for single-family homes that experts warn have little inventory, Carroll said. It pointed out.

“My prediction is that the single-family home market is going down in price, so we’re investing in the multi-family market because the purchase price is going to be higher,” Carroll explained. , see renting longer.”

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private equity group Buying single-family homes is the “biggest factor” driving prices down for first-time homebuyers in America, according to investors who have begun offering multifamily options to the typical first-time homebuyer.

“Essentially, there is no more starter home market,” Carroll said. “You are definitely seeing the effect of institutional investors buying homes.”

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This story has been corrected because an earlier version incorrectly listed BlackRock as one of the private equity investors buying single-family homes.

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