There’s almost unanimous agreement that the economy is strong enough to handle a rate hike, thanks to new jobs created and a safe unemployment level. But is the housing market ready?
“When it comes to the housing there’s a missing piece of the recovery — wage growth. It’s too low to sustain the market,” Redfin reports.
The stagnation of wage growth has barred many first-time buyers from entering the market, and according to Redfin, the stagnation will affect the housing market much more than a rise in interest rates.