HousingWire Daily Mike Simonsen on saving the spring housing market
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Mar 5, 2025 Mike Simonsen, President of Altos Research, dives into the challenges facing the spring home-buying market. He discusses how economic factors like rising unemployment and high mortgage rates are affecting buyer confidence. The conversation explores the implications of fluctuating interest rates on home sales and highlights strategies builders are using to adapt. Simonsen also emphasizes the power of data in countering market fears, showcasing trends that reveal resilience in certain regions. It's a timely look at navigating a complex housing landscape.
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Tariffs and Housing Market Uncertainty
- Falling 10-year yields imply cheaper mortgage rates, but also indicate weak economic indicators.
- This creates uncertainty in the housing market because cheaper rates might not stimulate demand if people are worried about job security.
Impact of Job Losses on Housing Demand
- Current low home sales are primarily due to high mortgage rates and affordability concerns.
- Job losses in professional sectors add another layer of uncertainty, making it harder to predict market recovery.
Uncertainty of the Spring Home-Buying Season
- The spring home-buying season's predictability has changed since COVID.
- A quick drop in rates is crucial for a strong spring season, but it is uncertain if the decline will be fast enough.