Mortgage rates, not the trade war, are top of mind for Rochester homebuyers
He suggested that Americans had become accustomed to rates in the sixes after the initial shock of their spike from the threes – but said they’re less comfortable with a further tilt higher. “Over the course of the past year, people have grown used to 6.25%, 6.5%,” he said. “But as it’s pushing 6.8%, or perhaps 7%, that is a barrier.”
Rochester, though, is showing no signs of a market in distress. The city’s construction restraint has kept inventory tight and demand competitive – and it could take years before meaningful supply relief arrives.
Home prices have continued soaring in recent years thanks in part to that scarcity of homes. Siwiec said price appreciation will likely continue – but doesn’t expect the same strength of growth in the coming years.
“I know we’re starting to see 3%, 3.5%, 4% [annual growth],” he said. “It’s still in the positive – we’re not losing value – but those 8%, 10%, 12% increases have to at some point come to an end.”
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