Looking at the national economy, the Fed is ramping up to another 25 bps rate hike at their May meeting, but the job market isn’t feeling the recession burn. Unemployment sits at 3.5%, private payroll is on the rise, and 236K jobs were added in the past month. Meanwhile, interest rates remain unpredictable day to day.
ICYMI: In an ongoing quest to fight inflation, the Federal Reserve recently raised its benchmark rate by 0.25 points to 4.75%-5%. So what does that mean for the housing market? The primary impact is reduced demand as buyers think twice about taking out long-term loans. Ironically, less demand could lead to lower home prices.
The Skimm explores this conundrum.
According to a new report from Redfin, average monthly mortgage payments are up 39% over just one year ago — a record spike — while interest rates are at their highest mark in more than a decade. But while median sales and asking prices are still rising, home searches, touring activity, and mortgage applications are all in decline, indicating a slowing market as buyers take pause. Get more numbers from Forbes.
