the housing market is seemingly entering a new chapter. Home sales are lagging, the pace of home price appreciation is slowing, and inventory that’s been stubbornly low across the country has seen spikes in certain markets, particularly on the West Coast. Can these companies still thrive if the housing market goes from a seller’s market to a neutral or buyer’s market?
Real estate database company Zillow Group expects mortgage rates will rise significantly in the new year, predicting the 30-year fixed mortgage rate will reach 5.8% by the end of 2019. The rate currently stands at 4.55%, according to mortgage buyer Freddie Mac.
The U.S. consumer is seeing their incomes increase at steady rates and consumption is moving along with that. One of the items that consumers will continue to buy is real estate.
Rising interest rates are seriously reducing Americans’ home buying power…
“We’re still seeing above-trend GDP growth that is likely to slow as the impact of last year’s tax cuts wears off with higher interest rates,” said Calvin Schnure, the National Association of Real Estate Investment Trusts’ senior vice president of research and economic analysis.
“Demand for industrial in the U.S. is off the charts,” says a number-cruncher for Cushman & Wakefield. “That market is completely on steroids.”