After we enjoyed years of sub-market rate interest we have to get used to higher rates. The government as usual displayed poor execution not he rate increase int he summer of 2021. Rather than a gradual climb they did a massive fast increase that startled the real estate market and apply emergency braking in a situation that only needed gentle braking.
Our market would make a nice mild comeback with a couple of 1/4 point reductions in the average mortgage rate. If we can get a typical 30 year fixed mortgage down to the low sixes, then AAA credit would drop into the high fives and mediocre credit buyers in the upper sixes this market will enjoy more sales. I do not think we will go into a hysterical frenzy, but we certainly will get a much needed boost in volume.
The Fed has moved cautiously towards a rate reduction plan and I believe this will lead to improved volume without any real upward price pressure. Let's hope they don't screw it up like they did in '21. We are moving in the right direction.
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