MarketWatch - Will the Housing Market Turn A Corner This Fall?
Sep 6, 2023
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MarketWatch real-estate reporter and head of retail lending at Bank of America dive into the current state of the housing market, discussing topics such as mortgage rate predictions, housing affordability challenges, addressing the housing shortage, insights on listing a home, down payment grants, and analysis of the US consumer.
Mortgage rates are expected to dip by the end of the year, potentially making housing more affordable.
Despite affordability challenges, the desire for homeownership remains strong among younger generations, indicating adaptability and determination in pursuing the dream of owning a home.
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Current challenges in the housing market
The housing market is currently facing a range of challenges impacting both buyers and sellers. While there is still demand for homeownership, the market is characterized by low inventory levels and the resultant aggressive rise in home prices. Affordability has become a major concern, with rising mortgage rates impacting buyers' purchasing power. The combination of these factors has led to a challenging market for both buyers and sellers to navigate, resulting in low purchase applications and an affordability index similar to that of the 1980s.
The persistence of the dream of homeownership despite challenges
Despite the affordability challenges in the housing market, research shows that the desire for homeownership remains strong among potential buyers, especially among younger generations. While acknowledging the competitive nature of the market, a significant portion of potential buyers, particularly from Gen Z and the millennial generation, are determined to maintain or accelerate their plans to buy a home. This suggests that although the path to homeownership may be more challenging, the dream of owning a home is still alive and well, with buyers adapting and being prepared for the obstacles they may face.
Forecasters expect the mortgage rates to dip by the end of the year. But will that be enough to make housing more affordable? Join MarketWatch real-estate reporter Aarthi Swaminathan and Matt Vernon, head of retail lending at Bank of America, to find out.
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