How Will The Housing Market Handle Rising Rates

Dated: 02/13/2017

Views: 68

Ever since the November election, when the Trump victory sent bond yields flying and mortgage rates following closely behind, analysts have been preoccupied with that question. From overly cautious lending standards to extremely tight inventory, the housing market has plenty of challenges, and any additional constraint won’t help.

While mortgage rates have not made a significant move upward yet, most analysts project stronger economic growth in the U.S. for later this year which always causes fixed rates to rise. But everything is relative as a stronger economy also means higher wages and more jobs....two key factors in housing demand.

With Inventory levels at 17 month lows and more consumers joining the work force and earning more, it actually more than offsets any uptick in mortgage rates.

The real key is going to be the regulatory path for changes in the Dodd-Frank Act. The Trump Administration has already signed one executive order for departments to review and change their regulatory rules based upon looser interpretations, but they have made it clear that they will be proposing changes in Congress to lighten up the impact of Dodd-Frank which would make lending easier for financial institutions and potentially add more home buyers to the market place than their otherwise would be and that would add more demand to a housing market that is already very tigh

Want to Advertise on this Site?

Latest Blog Posts

Leaders Speak On Racism And Real Estate

Real Estate Leaders Speak Out Against RacismTop RE brokerages recently contacted agents. A Keller Williams task force will work “to eliminate racial disparity.” Redfin plans a deeper analysis of

Read More

Tools Every Baker Should Have

Baking During Quarantine? 11 Things Your Kitchen NeedsBy Jennifer Kelly Geddes | May 18, 2020 eli_asenova/Getty ImagesDoes it seem like every post in your feed showcases a crusty

Read More

We Need Your Listings Florida Has Low Inventory Of Homes For Sale

Getty Images/RLT_Images MAY 5, 2020 Share this article: FacebookTwitterLinkedInPrintShare Fla. Had a Listing Shortage Pre-COVID – and It Still Does In 2008, Fla. had too many

Read More

Home Prices Are Still Rising In Florida

boonchai wedmakawand, Getty ImagesMAY 6, 2020Share this article:FacebookTwitterLinkedInPrintShareWhy Home Prices May Be Rising During the PandemicMany sellers are reluctant to cut prices.

Read More