Economists expect the Fed to hold in October and hike in December
“Market conditions weakened in September due to fast-rising mortgage rates,” said Lawrence Yun, the NAR’s chief economist. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates.”
The rate for a 30-year mortgage was above 7 percent for most of September, ending the month around 7.6 percent, according to Mortgage News Daily.
Home builder sentiment is at lows not seen in 14 years.
Goldman Sachs economist Ronnie Walker forecasts residential investment declining 2.5 percent, 4 percent and 1 percent over the coming three quarters, single-family starts of 875,000 in 2027, and existing home sales of 3.9 million, 26 percent below pre-Covid 2019 levels.
More than 95 percent of mortgage borrowers hold rates below the prevailing level and 65 percent are 2 percentage points below.
