Economic uncertainty is severely impacting the housing market, leading to sluggish home sales, which were at their slowest for April in 16 years. Builder sentiment has also dropped, indicating a lack of confidence in the market's recovery. High home prices, nearly 50% above pre-pandemic levels, coupled with increased mortgage rates, have made homeownership unattainable for many. Despite a strong desire from potential buyers, uncertainty remains, compounded by rising construction costs and regulatory factors. March data showed a decline in construction for single-family homes, complicating the supply outlook further.
Economic uncertainty has produced a double whammy for the housing market: sluggish home sales and plodding construction.
Home prices are up nearly 50% since before the pandemic, and mortgage interest rates ticked up to 6.86% last week.
Pent-up housing demand continues to grow, though not realized...Any meaningful decline in mortgage rates will help release this demand.
Construction of single-family homes dropped in April, according to figures from the Census Bureau.
Collection
[
|
...
]