The US Housing Market Stuck: Sales Slow Despite Lower Interest Rates
Despite dropping mortgage rates, the US housing market remains stagnant with no immediate signs of improvement. Experts predict recovery may not happen until 2026.
The US housing market seems to be facing an extended period of stagnation, with no immediate signs of improvement in sight. Despite a slight drop in mortgage rates, pending home sales have decreased, and economists are now predicting that the market may not fully recover until 2026 or later. The Federal Reserve's upcoming inflation report could provide further insight into the market's future trajectory.
While mortgage applications have seen a slight increase with the decrease in rates, home prices are showing signs of slowing growth. The current market conditions suggest that homes may start selling below asking prices, potentially leading to a loss of momentum in sale-price growth. However, the rise in new listings and inventory levels could attract more buyers into the market in the coming months.
Overall, the US housing market is facing challenges in terms of affordability and market recovery. Despite the potential for a slight boost in the summer home-buying season, a robust recovery seems unlikely at this time.
The US Housing Market Stuck: Sales Slow Despite Lower Interest Rates
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