Little relief ahead as Americans struggle to afford homes and investors shy away from buying property, economists say

Little relief ahead as Americans struggle to afford homes and investors shy away from buying property, economists say



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The housing‍ market⁢ is stuck ‍thanks to high prices, high mortgage rates, and low​ inventory.UCG / Getty Contributor

Low inventory, high mortgage rates, and⁣ high prices have created a difficult housing market.

Homeowners have seen equity climb, but house hunters are⁤ having a hard time breaking into the market.

Purchases by real estate investors plunged‌ 45%⁣ in the second quarter compared to last year.

It’s a tough time to be‌ navigating the US housing market.

Low inventory, high mortgage rates,⁤ and high prices have put the housing market⁤ into a state of unaffordability that’s weighing on house hunters, current homeowners, ​and even real estate⁢ investors.

The Federal Reserve’s​ aggressive interest⁢ rate hikes over the last ​18 months have led to mortgage rates hovering around two-decade highs, but so ​far home prices haven’t‍ fallen‍ as they usually do when⁢ rates climb.

Throw in distorted supply and demand dynamics and‍ economists see little reason to expect⁤ easing ⁣affordability.‍ Current homeowners are…

2023-09-02 15:15:01
Post from finance.yahoo.com
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