Important reasons: Little room for redemption for renters Also Sticker shock for homeowners as inflation pushes the Federal Reserve down the road to frankly higher interest rates, even as the economy loses steam.
News promotion: Interest rates are skyrocketing and home prices are falling, but not enough for would-be homeowners to jump into the market Experts believe there are more downsides than up. Chris Nielsen, his CFO at Redfin, told Axios’ Hope King this week that house prices are “holding up.”
- “We haven’t seen the typical oversupply that would indicate a significant drop in prices,” Nielsen said.
The Federal Reserve Means Business About Inflationand that spells bad news for most people with credit or loans.
- of WSJ notes soaring borrowing costs “One of the most noticeable effects of the Federal Reserve’s campaign to curb inflation by raising borrowing costs for consumers and businesses.”
What they say: Morgan Stanley analysts noted this week that consumer prices are still rising (and shelter costs nearly 1/3 of the CPI basket), “potential homeowners” [are becoming] Rent-seekers due to declining housing affordability. ”
- Veteran market watcher Peter Bookver said this week, “The only question from here is how far home prices will slow the pace of their rise, or will they fall completely in some overheated markets. ” writes.
To the point: Ultimately — though not immediately — the Federal Reserve can declare it has accomplished its anti-inflation mandate. drive the economy into a complete recessionAccording to Melissa Cohn, regional vice president of William LaVeyse Mortgage, this will bring mortgage rates down a bit.
- However, interest rates probably won’t go back to ‘3%. [and] It would be great if they could go back to 4%,” she told Axios in an email.