US Housing Market Shows Signs of Life
This week, a sequence of reports indicated a revival of activity: Housing starts reached a six-month peak, sales of pre-owned homes rebounded from a 13-year low, and builder confidence received a boost from heightened interest among potential buyers. Concurrently, Americans’ plans to purchase homes surged this month by the largest margin in over a year.
According to Finance Yahoo, even though the overall pace of activity remains subdued compared to the pre-pandemic period, the recent data highlight that consumers are starting to dip their toes back into the market and builders are revving up construction.
Perhaps the biggest case for optimism is the expectation from economists and markets that the Fed will ease policy next year after an aggressive 16-months-long hiking campaign.
The decline in mortgage rates should start spurring some homeowners to list their homes in the coming months, according to Lawrence Yun, chief economist for the National Association of Realtors, as supply remains an issue. Mortgage rates approached 8% in October, the highest in over two decades. But nearly two-thirds of owners have a mortgage rate below 4%, making it unappealing to sell their current home.