In episode twenty-four of the RiskWire Webcast, hosts Reena Agrawal, Research Economist, and Eric Fox, Chief Economist, examine why potential home buyers and sellers are hesitant to enter the market. This insightful episode breaks down the key factors driving market uncertainty and offers valuable perspectives for anyone involved in real estate transactions.
Episode Highlights:
- Mortgage rates have dropped from 7.22% in May 2024 to 6.35% in September 2024, yet many home buyers remain hesitant to purchase in this market.
- Economic concerns, particularly rising unemployment rates, are fueling uncertainty in the housing market.
- While housing supply is increasing as mortgage rates fall, many homes are either priced too high or considered undesirable, leading to fierce competition for the most sought-after properties.
- Some speculate that the September FED rate cut of 50 basis points could make mortgages more appealing. However, a rate cut won’t necessarily result in lower home prices or increased home buying.
- Press about the NAR settlement has sparked further uncertainty, as questions around commission structures are causing buyers and sellers to hesitate on making new decisions.
Watch this episode for a comprehensive look at what’s holding back home buyers in today’s market:
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