Strong levels of job creation, employment, and income should incentivize homebuyers to make their moves now.
Jonathan Smoke, the chief economist of Realtor.com, writes that the nation’s economic growth will eventually lead to a rise in mortgage rates, so people who are thinking of purchasing a home should act soon.
Mortgage rates, which have remained at the same level for the last few months, are expected to increase three times this year. If the economy is really flourishing, the Federal Reserve may raise rates four times.
A lack of available homes for sale may be the real issue for most buyers. According to Smoke, inventory grew 2 percent in February but is down 11 percent over the last year.
Low inventory and strong supply is leading to inventory moving faster and faster as measured by median days on market. The median number of days on market in February was 90 days, six days less than last year. We also saw 27% of all listings selling in less than 30 days. Last year, we saw that happen in mid- to late March, so this year’s timetable is about three weeks ahead.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
