Will U.S. Homebuyers Ever Have Hope?
Real Vision
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US mortgage rates rose to 6.65%...?
Is there still hope for homebuyers (and owners)??Or, “Is the housing market on the brink of collapse?”
Let's Talk About This:
The housing market has seen better days, or at least it was hoping for it. Just ask Sam Khater, Freddie Mac’s Chief Economist:??
“As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation, and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward 7%.”
Now, lower rates in January did bring a segment of buyers back into the market, but it didn’t last long as new mortgage applications just fell to a 28-year low…
Some of this is mildly temporary - or at least one can hope. Red-hot inflation likely won’t last forever, and supply chains will inevitably improve with time.?
The REAL issue with the housing market always comes back to supply. We’ve mentioned?it before, but just to remind you, experts estimate that the U.S. is anywhere from 3.8 million to 6 million homes short. In many cases, buyers who can afford homes pay all cash, and the sales are completed within two weeks. However, for the majority of Americans, paying all cash is simply not an option.?
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How do we fix this??
It's a complicated situation that's getting worse by the day. Some experts believe that zoning laws should be abolished or rewritten entirely. Others have suggested that the government provide incentives to encourage builders to do what they do best: build.?
Are there any long-term solutions you believe can fix the issue of limited supply? Comment your thoughts below! ??
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