flexiblefullpage - default
Currently Reading

Americans Expect Mortgage Rates to Top 8% by the End of the Year

Advertisement
billboard - default
Financing

Americans Expect Mortgage Rates to Top 8% by the End of the Year

Most U.S. households anticipate steady interest rate hikes throughout 2023, but that also translates to a slowdown in home price growth 


March 30, 2023
Person riding percentage point shaped like rocket against tan and blue sky
Image: Nuthawut / stock.adobe.com

The New York Federal Reserve's annual SCE Housing Survey revealed that most Americans expect mortgage rates to soar from 6.4% to 8.4% in 2023, reaching their highest level in nearly a quarter of a century. A dire outlook for mortgage rates comes amid the Federal Reserve’s steadfast efforts to tame inflation both in the housing market and in the overall economy.

As interest rates move higher, the majority of U.S. households predict house prices will rise just 2.6% over the next year, well below the 7% rally expected in the February 2022 survey, Insider reports.

Yale economist Robert Shiller, whose analysis with Karl Case formed the basis for the Case-Shiller Index, said Monday he expects houses to become cheaper over the next six months due to an expected slowdown in US economic growth.

"It's easy to forecast the short-run in the housing market, if you're a long-term buyer it's not clear," he told CNBC's "Closing Bell: Overtime". "Home prices are very, very high by historical standards."

"I would extrapolate the downturn somewhat — it's going to continue," Shiller added. "Maybe if you have a good chance to delay your purchase, it might be a good time to do it."

Read more

 

Advertisement
leaderboard2 - default

Related Stories

Financing

Credit for Builders Still Tight But Shows Some Easing

Credit for residential AD&C remained constrained during Q4 2023, but the good news is that tightening is less widespread than in recent quarters

New-Home Sales

Are We Headed for a Spring Homebuying Slowdown?

As mortgage rates rise to their highest levels in two months, Freddie Mac warns rates may stay higher for longer, which could affect spring buying 

Affordability

Philadelphia Labor Unions Are Helping Their Members With Homebuying

The housing market is tough. Recognizing that, Philly labor unions are stepping in to assist workers with their home purchases

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.