According to industry experts, a potential rise in mortgage rates to 7.5% or 8% could have a significant impact on the housing market, particularly in terms of unsold inventory. This increase in rates is expected to lead to a dramatic rise in the number of properties sitting on the market, as higher rates could discourage potential buyers and slow down the pace of home sales.
However, there is optimism that if mortgage rates were to fall, it could potentially reverse the trend of inventory growth. Lower mortgage rates could stimulate demand for housing, encouraging more buyers to enter the market and potentially reducing the number of unsold homes. This shift in interest rates has the potential to have a considerable impact on the overall health of the housing market, influencing both buyer behavior and inventory levels.
Key Elements:
– Potential rise in mortgage rates to 7.5% or 8%
– Impact on unsold inventory
– Potential decrease in inventory growth if rates fall
– Stimulus of demand for housing with lower rates
– Influence of interest rates on buyer behavior and inventory levels
You can read this full article at: https://www.housingwire.com/articles/how-this-weeks-fed-meeting-could-impact-inventory/(subscription required)
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