Economist from NAR says low point in sales “likely over”
Roseville, Calif.- Pending home sales rose 2.5% in December, signaling that the slowdown in the housing market may be ending. The National Association of Realtors issued the report which also said, new home sales increased along with loan applications.
“The recent low point in home sales activity is likely over,” says NAR Economist Lawrence Yun. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”
The housing market has been slowing since the record high when the pandemic and low interest rates propelled buyers into the market. In addition, the market has been restricted by the rapid increase in mortgage rates. This dramatically increased mortgage payments and chased many buyers to the sidelines.
“The new normal for mortgage rates will likely be in the 5.5% to 6.5% range,” Yun says. “Job gains will steadily become important in driving local markets.
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