1. Mortgage Rates Will Climb
“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”
2. Housing Inventory Will Increase
3. Home Prices Will Rise
“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”
Won’t Increasing Mortgage Rates Cause Home Prices To Fall?
“What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”
- Mortgage rates will continue to rise.
- The selection of homes available for sale will modestly improve.
- Home prices will continue to appreciate, just at a slightly slower pace.