The fundamental reason house prices will fall this fall

The prices that people expect tomorrow influence today’s demand and supply. Economists say that “fundamental” economic factors, such as interest rates and family income, determine home prices. For some unknown reason, economists don’t consider people’s expectations of future house prices to be a major factor in determining current house prices, but they should. Economists have … Read more

Speedy escape from housing market slump unlikely: ARMs tied amid low rate lock-up

Home sales, construction volumes and now even home prices in many markets (the last shoe to drop in a housing correction) are falling. Clearly, the fact that mortgage rates have soared from a low of 2.6% in December 2020 to six percent in early September is holding many would-be homebuyers in the grips. The last … Read more

‘Extreme buyer hesitation’ is pushing home sellers to pivot to renting instead of selling

Facing weak demand from home buyers, home builders and sellers are increasing their focus on the rental market. And that’s probably good news for renters. Home sellers face a tough market. The 30-year interest rate slips past 6%, according to Daily Mortgage News TuesdayCompounded by recession fears, they are holding back buyers. Sellers are, as … Read more