According to new research from the Federal Home Loan Mortgage Corporation, the current decline in consumer demand in the US #housing market is likely to continue for sometime yet.
In #FreddieMac's most recent quarterly forecast, they noted that mortgage rates more than doubling over the last year was a key driver.
Freddie Mac's Chief #Economist, Sam Khater, highlighted the well known issues with high #interestRates impact on the property market. The first being exsiting #mortgage holders inability to pay for variable rate mortgages that have increased heavily OR fixed rate #mortgages that expire to large jumps in repayment amount, causing potential increases or influxes of #property into the market, boosting #supply. The second being new home buyers inability to afford higher interest rates, removing buyers and decreasing #demand.
What this means for #investors, both in the US market and elsewhere is, a likely decrease in house prices with high supply and low demand. A key buying signal once the market is actively respondng to those variables.
Comments